cebenomic's open, shake out up n over thursday, page-31

In America:

Dow Industrials +1.53%
Dow Transports +1.28%
SP500 +1.61%
Russell 2000 +2.71%
Nasdaq100 +0.87%

Comment: Looked at in isolation, those figures are sound. Volume was low – so that places a question mark over the quality of the upswing. Today’s candle was inside the range of the previous day – so not that strong. Looking at the chart, today’s action looks like a back test of the uptrend arrow in place from early October. Today’s candle lies between support and resistance. hmmmm. This could easily be an ABC correction, and we’re seeing Leg B now.

NewHighs/NewLows 25/15. NH>NL. That’s a positive, but the New Highs are hardly robust.

Technical Comment on the Dow Industrials:
The DJIA finished at 11836. That’s That’s between support and resistance 11650/11900.
Below the 10-Day MA. The chart is still in the lower half of the Bollinger Bands. It needs to get back into the top half.
The Dow is still below to the 200-Day MA. It now stands at 11969. That’s another resistance level to be overcome.
Indicators:
* Stochastic: 52.6. Below its signal line. Plenty of room for downside movement.
* RSI.9 is at 54.1. Above its mid-line. Positive.
* MACD Histogram below Zero. Negative.
* MACD (zero lag) above zero. Positive.
* CCI.14: +8.8. Above the zero line. It could be bouncing off the zero line – but not yet convincing.

This still looks to me like a pull-back in a bull rally – but I’m not convinced that the pull-back is over. At the moment the action is in limbo – today resolved nothing. Another strong day up on increasing volume would be a big positive. But – I think we’re more likely to move to the bottom of the Zone of Congestion before this pull-back is over.

Currently I’m undecided.

I don't think last night's action in the Dow was good enough to give me the big up day on good volume that I wished for last night. We shall see how today pans out.

Meanwhile, the Europeans are putting the screws on the Greeks to stop dilly-dallying. :)

Redbacka