Iguana Thursday0709, page-10

In America:


Dow Jones -0.06%, SP500 -0.01%, Nasdaq +0.15%, New York Composite -0.01%, Russell 2000 +0.61%. Except for R2K, Indices finished more or less flat after being down in the morning session, but then intra-day buying came in to negate the early pessimism. Same old story. Bulls are not giving in.

NYSE NewHigh/NewLow Ratio remains bullish at 97.5%. New Lows are at 6. If we see a big increase in New Lows, the up trend could be in trouble. NH/NL Ratio has been a good guide for remaining with the up trend.

SP500:



The Heiken-Ashi chart shows the SP500 in a short term up trend. Indicators with the exception of MFI are above their mid-lines or zero lines. The upside resistance lies at 2190.15. SPX finished today at 2186.5, less than four points the difference, or about 0.2%. The tightness in the Bollinger Bands on the long-term Stochastic (50.10.10) remains a concern. Indicators are showing possible negative divergences. A big down day would be a strong negative technical signal.

Commodities:



DBC, the Commodities Index tracking ETF, up strongly +0.9% on the back of a good result in Energy +1.08%. DBC is back into a short term up trend and up against resistance of the 20-Day MA. Industrial Metals up modestly +0.22%. Gold down -0.34%. Gold is entering a seasonally favourable period. Iron Ore down -0.5%.

Early in this morning's session, the Australian market is down >1%. That's a failure at the 10-Day MA. Not good. My preferred scenario seems to be playing out.

RB.