In America:Dow Industrials -0.49%Dow Transports -0.47%SP500...

In America:

Dow Industrials -0.49%
Dow Transports -0.47%
SP500 -0.43%
Russell 2000 -0.59%
Nasdaq100 +0.02%

Comment: Another narrow range day, this time on average volume. Traders decided to come back from a long weekend up at the Hamptons. The last day of the month we often see a volume surge. It didn’t happen last night. So there seems to be a reluctance at this stage to commit to this market one way or the other. Waiting on The Bernank.

NewHighs/NewLows 177/24 NH>NL. The ratio of NH/(NH+NL) is at 88%. In the Do Not Sell Zone.

Technical Comment on the Dow 30:

The Dow finished at 13008.7. Support/Resistance: 12977.6/13058. Support at high of 19 July.
Indicators:
MACD Histogram. Above zero. Positive. But dipping.
MACD. Above zero. Positive.
RSI.9 is at 61. Positive, but dipping.
Stochastic. 88.6. Overbought.
CCI.14: +109.5. Overbought.

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.

The last two sessions have been relatively narrow range days. A third one would suggest that this is just consolidation waiting for the next move up. A big down day breaking the high of 19 July would suggest a short term pull back, possibly to the 20-Day Moving Average. Of course, it could be the start of something bigger.

At the moment I’m favouring a short term pull back. But that’s a bit of a guess.
The Ozzie Dollar held up reasonably well last night. Against the USD it was up marginally, +0.16% and against the Yen it was down a little, -0.27%. So there’s no real action there.

Last night I showed an intra-day chart for the Ozzie All Ords which suggested, to my mind, that we’d see a bit of softness for a day or three. While we stay in the up trend channel, we’re just looking at short term pull-backs in an ongoing medium term up trend. How long can that last for? Longer than you or I expect.

Redbacka