mongombolo's - deep penetrations - wednesday, page-24

Today's summary is a bit late - I had to take my grand-daughters for their first ever hair cut at a ladies hair salon. First of many. :)

In America:

Dow Industrials -2.19%
Dow Transports -3.67%
SP500 -2.56%
Russell 2000 -3.26%
Nasdaq100 -2.6%

Comment: Eighth day down on the Dow Industrials and the market says it couldn?t care less about ?the deal?. Lots of other things to worry about. Can the Dow get another day down? The market can do anything it wants.

NewHighs/NewLows came in at 20/169. Those are panic selling figures.

The Materials Sector -3.09% and Energy Sector -2.78%. Those numbers are awful for the Australian market on Wednesday. All nine S&P Sectors were down with Consumer Discretionary (-3.78%) the worst.

The Banking Sector took a big hit , -3.22%. Semi-conductors performed in a similarly poor manner, -3.04%.

Europe:
France -1.82%
Germany -2.26%
London -0.97%

Gold in U.S. Dollars is up +2.32%. Gold in Oz Dollars is up +4.61%. AUD/USD is down modestly -1.77% to finish at 107.78. EWA (the ETF for Australian shares) was hit hard -3.01%. The action on the Ozzie dollar looks ominous.

Technical Comment on the DJ Industrial Average:
The DJIA finished at 11866.8. The June low was 11862.
Below the 13-Day MA. Negative.
Below the 150-Day MA. Negative.
Indicators:
Stochastic: 9. Very Oversold. Levelling out.
The 13-Day MA is above the 150-Day MA. Positive.
RSI.9 is at 22.6. Very oversold. In a zone where reversals can occur.
RSI.5 is at 10. (Not on chart.) That?s the lowest since June, 2010.
MACD Histogram below Zero. Negative.
MACD below zero. Negative.
CCI.9: -177.5. Needs to climb back above -100. Levelling out.

Tuesday?s ?sell? signal continues in force. Panic is showing up in the NH/NL figures. The market is very oversold. By some measures - the worst since June, 2010 which was "the bottom" in 2010.

The big down day today on high volume negated yesterday?s optimistic reversal day. The market is at the June 2011 low. I think that any rebound is likely to be a dead cat bounce with today?s low revisited again in the near future. The market might then be able to make head way.


Good luck
Redb