7 in a row wednesday, page-3

In America:

Dow Industrials +0.56%
Dow Transports +0.59%
SP500 +0.62%
Russell 2000 +1.31%
Nasdaq100 +0.79%
Comment: The major indices were up moderately on low volume. Volume was even lower than the Xmas period, 2011. Breadth on the R2K was good.

NewHighs/NewLows 296/5. NH>NL. The ratio of NH/(NH+NL) is at 98.3%. In the Do Not Sell Zone. The past three days have been extremely strong readings.

Technical Comment on the Dow 30:

The Dow finished at 12943.8. Support/Resistance: 12810/13267.
Indicators:
Stochastic: 96.3. Overbought.
RSI.9 is at 66.6. Positive. In a zone where pull-backs can occur. (Devil's Number - Occultists will be shaking in their boots.)
MACD Histogram. Above zero. Positive.
MACD. Above zero. Positive.
CCI.14: +128.2. Overbought, but can move a lot higher.

The 10-DayEMA (blue dotted line) is above the 20-DayEMA (red dotted line). Positive.

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

On the daily chart, the market is getting a little stretched to the upside.

On the weekly chart, we can see that the Dow 30 is now in a strong Resistance Zone. The big blue horizontal line is from an old major high back in early 2008. So, the Dow 30 might struggle a little here, especially as it is short-term overbought. The weekly indicators still have room to move to the upside, so if the Index can get above this Resistance Zone we might see a very strong move up. Above 13268 would produce new multi-year highs. That would suggest a target of the 2007 highs. Still - it has to surmount this Resistance Zone first.

Gold, Copper and Oil all had good upward moves last night. BHP on the New York market had a solid rise and is close to completing a double bottom. Australia should do OK today - but we often shilly-shally before an American holiday. So don't expect too much.

Redbacka