mittas hopping onto the dance floor thursday, page-22

In America:

Dow Industrials +0.78%
Dow Transports -0.96%
SP500 +1.11%
Russell 2000 +1.79%
Nasdaq100 +1.37%

Comment: The slow creep up continues. The Dow 30 broke above the down trend line in place from April, 2011 and is now restrained by the upper line of the rising wedge. Volume was solid but not spectacular.

Banking Index was up +1.12%. It regained most of the previous day’s losses, and negates the nascent bearish signs. It may be forming a bull flag. I’ll be watching closely.

NewHighs/NewLows 130/16. NH>NL. The ratio of NHs/NLs continues to favour NHs – and New Lows have dropped back to a more benign level.

Technical Comment on the Dow 30:

The Dow finished at 12579. Remains above both the 15-Day MA and the 150-Day Moving Average.
The upper line of the rising wedge is at 12590.5.
Indicators:
Stochastic: 84.5. Overbought. Below its signal line. Caution
RSI.9 is at 70.5. Overbought.
MACD Histogram. Marginally below Zero. Neutral. Negative Divergence.
MACD. Above Zero. Positive.
CCI.14: +146.9. Overbought.

The Dow 30 remains within a rising bearish wedge. A break above that should see the highs of April targetted next (about 12800). Both the Stochastic and CCI are registering overbought. More importantly, the RSI has risen above 70. A rise above that level requires investors to be ultra cautious.

The medium term trend is up. The short term trend is up.

Respect the trend.

Australian market today? I thought the past two days in Australia were beginning a set-up for a pull-back. That set-up required a solid down day today. It doesn’t look like we’ll get it

Redbacka