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In America:

Dow Industrials +0.27%
Dow Transports +0.81%
SP500 +0.14%
Russell 2000 +0.18%
Nasdaq100 -0.62%

Comment: Dow 30 was up modestly on slightly lower volume. Today was another reversal day (down/up) – not quite as dramatic as yesterday but low-to-close was about 110 Dow 30 points – and it did finish positive. Until 2.00 p.m. (NY time) the market was well down then started to move up.

Two days in a row. Bulls win. ”Somebody” thinks this is worth buying at this level – and they’ve got long pockets.

NewHighs/NewLows 39/46. NL>NH. The ratio of NH/(NH+NL) is at 45.9%. The Ratio is well into neutral territory. The drop off in New Lows is encouraging.

Technical Comment on the Dow 30:

The Dow finished at 12529.8. Support/resistance – 12230/12770.
Indicators:
Stochastic: 22.6. Above its signal line. Above 20. Positive.
RSI.9 is at 34.4. Above 30. Needs to get over 40 to be in the neutral zone.
MACD Histogram. Above zero. Fantastic.
MACD. Below zero. Negative.
CCI.14: -64.8. Needs to be above zero.

Indicators have all turned up – still not enough to give a simple “buy” signal – but promising.

The 10-DayEMA is below the 20-DayEMA. Negative.

The medium term trend is down. The short term trend is undecided. The Index needs to close above Tuesday’s high to signal a change in the short term trend. A break below yesterday’s low would be bearish.

Last night’s chart of the ASX200 shows the possibility of a double bottom forming. If today the Australian market plays catch-up with America – we could be within a day or two of that possibility coming to fruition. On the other hand – this could just be a consolidation before the next drop down. Watch these levels: 4120/4045. Yesterday the market finished at 4055.8. So the break-down level is not far away. I don’t think we’ll see that today. But – you never know.

Redbacka