mile thigh thursday., page-9

Pauley - in the best tradition. TU

In America:

Dow Industrials +0.17%
Dow Transports +0.34%
SP500 +0.02%
Russell 2000 -0.66%
Nasdaq100 +0.33%

Comment: A narrow range day inside the range of the previous day, on good volume. Big down day tomorrow would be bearish. But this may be a continuation pattern. Small caps (Russell 2000) were weak. Not good.

NewHighs/NewLows 79/11. NH>NL. NLs up a little on yesterday.

Technical Comment on the Dow 30:

The Dow finished at 12418.4. Remains above both the 15-Day MA the 150-Day Moving Average.
Indicators:
* Stochastic: 87.3. Overbought. Could be setting up a negative divergence.
* RSI.9 is at 65.9. Above 50. Positive. Negative divergence setting up?
* MACD Histogram. Marginally above Zero. Neutral. Negative divergence setting up?
* MACD. Above Zero. Positive.
* CCI.14: +107.6. Overbought. Negative divergence setting up?

The blue oblique resistance line at the top of the chart is the down sloping resistance line from the April, 2011 high. That’s the line the chart must break to confirm a long term bullish profile. The 15/150 Day Moving Averages suggest this is a bull market – but a break above that resistance line would confirm. The chart looks toppy – so it might be a few days before an attempt on that line can be made – or it could be a few weeks.

I wouldn’t be entering this market at this time. I think I’ll wait for a dip.

The short and medium term trends both remain up.

The DAX (German). Yesterday I said: " Very overbought. Right at the 150-Day MA. Looking for a pullback." Today the DAX was down 0.9%. But no real damage done yet.

Currency.

The Ozzie is holding up reasonably well. Support now lies around 1.03.

It looks like we’ll have a relatively flat day on our stock market today.

For the Gold Bugs:

The POG is now in a short term up-trend and has broken above an important horizontal resistance line (solid red line). There’s probably more in this. The 150-Day MA might pull it up.

Redbacka