market perception - thursday, page-9

Great first image. Is that cup half full or half empty?

Above is a Candle Stick chart for the SP500.

In America:

SP500 -1.39%
Dow Industrials -1.35%
Nasdaq100 -1.22%
Dow Transports -1.19%
Russell 2000 -1.35%

Comment: The candle today is a bearish, engulfing candle on heavy volume.

NYSE NewHighs/NewLows. 118/92. Ratio: 56.2%. NL>NH. Back out of the Do Not Sell Zone. New Lows are once more on the rise. Nasdaq NH/NL Ratio: 80.5%.

Technical Comment on the SP500 (closed at 1628.93)

Indicators:

MACD Histogram. Above zero. Positive, but falling. Short term longs take profits.
MACD. Below zero. Negative. This still suggests "sell the rallies" is the better option. (This happened last night.)
RSI.9 is at 47.3. Back below 50. Negative.
Stochastic. 66.3. Positive.
CCI.14: +37.7. Back below +100. Negative.
Chaiken Money Flow: -0.044.

Support and Resistance:

Near Term Horizontal Resistance: 1643.4. Major Oblique Support: 1614.35 (-0.9%)
40-Day TMA: 1640.5
20-Day TMA: 1634.5

The 20DTMA is below the 40DTMA. After only one day above both 20 & 40 Day TMAs, the Index has fallen back below both. That's a whipsaw. Until major oblique support is broken to the down side, the medium/long term trend is up. But this Rolls Royce Rally is failing to proceed. It ain't looking good, but the tow truck hasn't arrived yet.

Last night, The Head Mechanic (Bernanke) didn't say the WAWKI (World As We Know It) is ending. But the dissenters on his erstwhile Committee of Mechanics rose from one to two. That was the bad news. The view of the U.S. economy presented in the FOMC announcement was rosy. That was the good news. The market went down. Beats me. I'll just watch the charts. The SP500 is not looking flash, but not yet terminal.

Factors affecting Australia: US$ Gold up, +2.76%; Copper down, -0.36%; Oil, -0.51%; Coal, -2.83%; Steel -1.52%, AUD, -1.54%. The Ozzie Stocks ETF on the NYSE (EWA) was down -2.52% (ouch). BHP on the NYSE down -2.78%. (ouch again).

Redbacka