Comment: The Dow 30 did the best of them, but the rest of the market was down moderately.
Tech stocks in particular were weak with Disk Drives down -0.92 and Semis down -0.81%. Retailers were very weak, down -1.74%. They were the worst of the Industry Indices, so it looks like the market is predicting very weak sales for December.
The SP500 has now had three days down in a row. The big fall in October/November didn’t produce more than two days down in a row.
NewHighs/NewLows 67/19. NH>NL. The ratio of NH/(NH+NL) is at 77.9%. Out of the Do Not Sell Zone.
Technical Comment on the SP500:
The SP500 finished at 1419.83. Nearby Support: 1418.53. At Support. MACD Histogram. Below zero and dropping. Negative. MACD. Above zero. Positive. RSI.2 is at 12.2. This is a very short term measure of Relative Strength. It needs to get down to 5 to be very oversold. Stochastic. 51.4. Negative. CCI.14: -38.5. Below zero. Negative.
Indicators gave off consensus sell signals last Friday. The chart has broken below the up trend channel marked on the chart and is now at a major horizontal support level. Below that is the low of 14 December (marked with an arrow). To be confident that the trend has changed to the down side, the market needs to close below that important pivot point.
I usually show RSI.9. The default setting for RSI is 14 Days. The RSI.2 is a very short term setting. It needs to get down below 5 to register a very oversold reading. That’s no guarantee of a rebound, but it’s not a bad start. The market is close to that now. If the market is to rebound, the momentum indicators are low enough, the chart at an important support level, and after three down days, tomorrow would be a good time for a rebound. It needs good news to do that. Obama and Boehner? It looks like it is up to them. The market still doesn’t seem overly perturbed by the problems in Washington. I expect a rebound. But you never know.
(20min delay)