Proof Reading Wednesday, page-5

In America:

The market went through a choppy session, going positive for a brief time in the morning period. Losses at the end of the day were generally modest, except for the more volatile Russell2000.

DJ -0.14%, SP500 -0.29%, Nasdaq -0.26%, NYA -0.36%, Russell2000 -0.69%.



I've put a Stochastic RSI indicator in the lower panel. This is a short-term volatile indicator which gives lots of false readings, so has to be used with caution. It is showing, however, that all indices are now oversold. So a positive session or two can be expected soon. A rise above 0.2 would indicate that. It can, of course, remain oversold for long periods of time. So don't act on this indicator just now.

Except for the Russell2000, the indices remain above the 20-Day MA, so this remains a continued pull-back within an ongoing up trend.

SP500:



SP500 had a narrow range, indecisive day, with a modest loss. It is clearly in a short term down trend. MACD Histogram has gone negative. Short Term Stochastic (14.3.5) continues to head down and has plenty of room to move lower. There's no sign, as yet, that this is ready to turn around.

VIX



VIX remains below the 50-Day MA. Punters aren’t too worried. Maybe they should be?

Commodities:

DBC -0.45%. Industrial Metals -0.93%. Energy +0.00%. Gold -0.81%. Iron Ore -4.4%.

We should give up yesterday's modest gains, but the down draft shouldn't be too bad.

RB