Quiet in here. Everybody taking a P?In America:SP500 +0.07%%Dow...

Quiet in here. Everybody taking a P?

In America:

SP500 +0.07%%
Dow Industrials -0.06%
Nasdaq100 -0.05%
Dow Transports -0.02%
Russell 2000 +0.1%

Comment: Flat across the board. The structure of the day was, however, good. Down, then up, showing buying pressure.

NewHighs/NewLows 81/31. NH>NL. The ratio of NH/(NH+NL) is at 72.3%. Still not in the Do Not Sell Zone. New Lows crept up a little and showing a little nervousness. I’d like to see those below 25 and the the Ratio move into the DNS Zone.

Technical Comment on the SP500:

The SP500 finished at 1387.82. Support/resistance: 1365/1418.65. Back above a major horizontal support/resistance line.
MACD Histogram. Above zero. Positive.
MACD. Below zero. Negative.
RSI.9 is at 48.3. I’d like to see this above 50.
Stochastic. 38.3. Positive.
CCI.14: -14.1. Above -100. I’d like to see this above zero.

Monday’s action was promising. To confirm a change in trend, I’d like to see a bit more positive action in the Indicators and the 13-D TMA turn up. A move by the Money Flow Indicator above +0.05 (bottom pane) would also be helpful.

I mentioned in last night’s report that I expected a pause day for New York. That’s what we got.

Two things there – firstly, after the big up day Monday and the good reversal day on Friday, one wouldn’t expect another big up day. Second, the chart is in a small zone where previous selling pressure was manifest. Today, the long lower tail shows that the bears did come back in, but, in the end, the bulls prevailed, but only just. They still need to clear this zone to feel confident.

Thursday is a holiday in America and Friday is a half day on the stock market. Wednesday, many traders are likely to be absent from desks or taking off early to prepare for the traditional Thanksgiving holiday in America. So, we might have to wait till next week to get any meaningful action.

Redbacka