paddington's bear, donkey and rabbit - tuesday, page-53

In America:

Dow Industrials +2.97%
Dow Transports +3.86%
SP500 +3.41%
Russell 2000 +4.37%
Nasdaq100 +3.45%

Comment: A wide range day on low volume – probably due to the Columbus Day Holiday in America. Although the country was on holiday, the market was still open – but plenty of people in the industry had a long week-end. It might also explain, to some extent, the low volume day on Friday. However, we must note the negative volume divergence which has been set up. A determined selling move would easily knock this nascent rally on its back. I’m not predicting that – just being cautious.

NewHighs/NewLows 23/10. NH>NL but not by much. The NHs needs to be a lot higher to instil confidence.

The Materials Sector +4.21% and Energy Sector +4.53%. Copper was up +5.29%. Those figures are strong and positive for the Australian market on Tuesday. All nine S&P Sectors were up with Financials the best, +5.13%. The Banking Index was up, +5.31%. Semi-conductors up, +2.82%.

Europe:
France +2.13%
Germany +3.02%
London +1.8%

Gold in U.S. Dollars is up +2.39%. Gold in Oz Dollars is up +0.14%. AUD/USD up, +2% to finish at 99.88. The Battler looks like its head up to resistance around 101/102. EWA (the ETF for Australian shares) up +4.62%.

Technical Comment on the Dow Industrilas:
The DJIA finished at 11433.2. Getting close to the next resistance level around 11500.
Above the 8-Day MA. Positive.
Above the 34-Day MA. Positive.
Indicators:
Stochastic: 74.1. Above its signal line. Positive.
The 8-Day MA is below the 34-Day MA. Negative
The 13-Day MA is below the 150-Day MA. Long-term negative.
RSI.9 is at 61.9. Above 50. Positive.
MACD Histogram above Zero. Positive.
MACD (zero lag) above zero. Positive.
CCI.14: +129.8. Overbought.

Slowly but surely all the negatives are being dispatched. Most of the momentum indicators allow for a little more up room before registering overbought.

Short term the trend remains up. For the medium term bullish case, I still want to see a positive 8/34 MA x-over before I’m convinced.

Long term, the market needs to get above resistance at around 11700.

Remain cautious. DYOR.
Good luck
Red