martis's - royal spanking friday, page-95

Bit late - but here's my thoughts on last night's action.

In America:

Dow Industrials +2.86%
Dow Transports +4.49%
SP500 +3.43%
Russell 2000 +5.26%
Nasdaq100 +2.79%

Comment: The market is beginning to look a bit frothy. It hit resistance today at about 12300 and then fell back a bit. Volume continues to rise. So professional money might just be starting to sell to the johnny-come-latelies. I’ll be surprised if we get more than one extra day up before the market sits back.

NewHighs/NewLows 174/7. NH>NL. The New Lows figure is almost non-existent, while the NH figure has risen well above the bullish benchmark of 50.

$gold:$CRB Ratio is once again falling but still not into bullish territory. The Banks are now in bullish break-out territory.

Technical Comment on the Dow Industrials:
The DJIA finished at 12208.5. That’s after getting up to 12284.3. Close enough to resistance at 12300. Horizontal support now at 11900, then 11700.
Above the 10-Day MA. That’s the mid-point of the short-term Bollinger Bands. (It’s been above that line since 6 Oct.)
The Dow sliced through the 200-Day MA like it didn’t exist.
Indicators:
* Stochastic: 88. Overbought and flattened out. Negative – still has to fall below 80 to confirm.
* The 13-Day MA is below the 150-Day MA. Long-term negative.
* RSI.9 is at 71.7. Overbought. A fall below 70 would be a short term take-profits signal
* MACD Histogram marginally above Zero. Neutral.
* MACD (zero lag) above zero. Positive.
* CCI.14: +191.5. Rarely does the CCI reach +200 without a consolidation or retrace. Above +300 and it becomes a near certainty.

The month of October still hasn’t had more than one day down in a row. That’s some record.

The market is close to a consolidation/retrace. If we’re in a bull market, that move down could be held by the uptrend arrow.

Let’s see how tomorrow goes.

Redbacka