cherchez la femme thursday, page-5

In America:

SP500 +0.79%
Dow Industrials +0.83%
Nasdaq100 +0.9%
Dow Transports +0.74%
Russell 2000 +0.71%
Comment: A wide range reversal day to the upside, on solid volume. Bears came out to play early in the session (long lower tail), but they disappeared swifter than a “Once Only” Apple Mac Special last Friday at the Apple Store.

NewHighs/NewLows 89/25. NH>NL. The ratio of NH/(NH+NL) is at 78%. Falling out of the Do Not Sell Zone. New Lows are creeping up.

Technical Comment on the SP500:

The SP500 finished at 1409.93. Support/resistance: 1365/1418.65.
MACD Histogram. Above zero. Positive. It continues to fall.
MACD. Above zero. Positive.
RSI.9 is at 59.1. Positive.
Stochastic. 78.3. Positive.
CCI.14: +97.6. Above zero, positive.

Four Momentum Indicators remain in positive territory.

Chaikin Money Flow (bottom pane) has moved out of the neutral zone and into the positive zone.

Except for Tuesday, any time in this rally that the bears have tried to assert their dominance, the bulls have rallied. See the long lower tails marked. This is typical “Buy The Dips” action which occurs in a strong bull rally. The Tuesday action can be seen within that context – the dip lasted a day and a bit – and then bought.

We might see a bit more sideways action before the next move (either up or down), but today’s action was promising.

Near term horizontal resistance is, however, formidable. I suspect that bears might become more active when the Index reaches that level.

Let’s see how it goes.

Redbacka.