ok cant wait it is wednesday, page-3

In America:

Dow Industrials -0.5%
Dow Transports +0.13%
SP500 -0.57%
Russell 2000 -0.2%
Nasdaq100 -0.37%

Comment: The Dow 30 and SP500 were down moderately with volume once again at the high end. A break in the clouds has occurred with relatively good performances from Transports and Russell2000. That break could just as easily close.

NewHighs/NewLows 40/126. NL>NH. The ratio of NH/(NH+NL) is at 31.7%. The Ratio remains out of the “Do Not Sell” Zone above 80 but not yet into desperation territory below 20. The New Low figure is increasing and showing panic selling.

Technical Comment on the Dow 30:

The Dow finished at 12632. Index is below the old horizontal support level around 12770. Support – 12230
Indicators:
Stochastic: 6.8. Oversold. Oversold just became more oversold.
RSI.9 is at 23.7. Oversold. Oversold just became more oversold.
MACD Histogram. Below zero. Negative.
MACD. Below zero. Negative.
CCI.14: -128.7. Oversold.

Rarely does the RSI.9 get below 30 without a retracement. Possible positive divergence is setting up on the CCI. Until the index hooks upwards, that remains just a possibility.

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

The chart has broken below horizontal support and finished just below a shallow oblique support line across the lows in Feb/Mar/Apr, 2012.

The long term trend is undecided. The medium term trend is down. The short term trend is down.

Overnight I read an interesting statistic. In every year for the past 33 years, the Dow 30 has revisited the closing value of the previous year – that’s around 12218 – close enough to the next major support level at 12230. hmmmm. That’s an amazing statistic – there’s been some great years in that time span. I haven’t checked the accuracy of that figure, but I’m presuming it’s correct.

Are we there yet? Yesterday I mentioned that speculative traders might enter the market if the New York McClellan Oscillator dropped below 80. I thought one more down day would do it. Last night’s moderate drop wasn’t sufficiently bad to drop NYMO enough. So – we’re not there yet.

Redbacka