In America:Dow Industrials +0.04%Dow Transports -0.46%SP500...

In America:

Dow Industrials +0.04%
Dow Transports -0.46%
SP500 +0.22%
Russell 2000 +0.12%
Nasdaq100 +0.54%

Comment: The Dow 30 and SP500 were both relatively narrow range days. Volume on both these bench mark indices was up a bit on the previous two days. So interest seems to be increasing – the bull/bear battle warmed up just a little today.

The market was up a little at the opening, then fell out of its tree. Once again, around 11.30, the Latte Buy-The-Dip Mob returned from Starbucks, took one look at the charts, turned to the office-boy (Irving J. Vanderbilt IV) and asked, “What have you been doing?” Beat him around the head, and started buying, taking the Dow back up to par. (The above version of events is, of course, apocryphal. No real humans on Wall Street were beaten around the head, to the best of my knowledge, which is zilch.)

NewHighs/NewLows 170/2. NH>NL. The ratio of NH/(NH+NL) is at 98.8% – that remains in the “no sell” zone (above 80%).

Technical Comment on the Dow 30:

The Dow finished at 12884. Above the 15-Day MA and well above the 150-Day Moving Average.
Indicators:
Stochastic: 94. Overbought
RSI.9 is at 74. Overbought
MACD Histogram. Marginally above Zero. Neutral.
MACD. Marginally above Zero. Neutral.
CCI.14: +134.1. Overbought.

Momentum Indicators are once again overbought. That’s not a signal to act – just a cautionary sign.

The chart is within a narrow rising channel. A break one way or the other from that channel should be significant. The chart is marginally above the 2 May 2011 intra-day high of 12876. Marginal isn’t good enough. The chart is in the doldrums.

Short term and medium term – the trends remain up. Don’t fight the trend. (DFTT).

Redbacka