Weekend Charting and Chat - 12 December 2014, page-6

In America:



Nasdaq Composite -1.16%.  New York Composite -1.77%.  Russell 2000 -1.24%.  Dow Industrials -1.79%.  SP500 -1.62%.

All Dow 30 components were negative last night with IBM down the most -3.53%. A further 12 stocks were down >-2%.

Most damage was done to indices in the afternoon session.  Nasdaq 100 was actually positive at that stage and the Nasdaq Composite was just below par.

Both the Dow 30 and SPX are now down to their 50-Day M.A.s, so some sort of a bounce could occur.  But that might be all it could be.

Surprisingly in such a pull-back, R2K is holding up best of the major Indices.  So breadth according to this criterion is not too bad.

NYSE NH/NLs are now at 13.3%.  That's low and indicates panic selling.  But they can go lower.  Back in the October pull-back we saw a string of sub 10% readings before a bottom was found.

Here's the detailed SP500 Chart:



Both the RSI and CCI are very oversold.  We still haven't seen volumes reach the wash-out levels seen back in the October pull-back.

The second half of December tends to be seasonally strong.  So we could see an end to this pull-back next week.  Next week is also OpEx week.  It has a bullish bias.

Full Weekly Report tomorrow.

Redbacka