redbacka's - reinin' in the buyin' - wednesday, page-8

Thanks BD - if only......... My grand kids think it's hilarious when they point at my head and scream with laughter "You've got too much hair."

I woke to a pleasant surprise this morning. Dow Industrials up over 50 Points:

Then I saw the Dog’s Breakfast:

In America:

Dow Industrials +0.43%
Dow Transports -0.76%
SP500 +0.11%
Russell 2000 -0.03%
Nasdaq100 -0.23%

Comment: As you know, I don’t like disharmony in the markets. Disharmony has to be resolved – usually to the more negative side. That’s especially true today, as the Dow Industrials sold off in the last hour.

NewHighs/NewLows 74/13. NH
Technical Comment on the Dow Industrials:

The Dow finished at 12150.1. Above the 120-Day Exponential Moving Average (blue dotted line) at 11720. Bullish.
Indicators:
* Stochastic: 89.3. Overbought.
* RSI.9 is at 64.8. Above 50. Positive.
* MACD Histogram. Above Zero. Positive. But falling
* MACD. Above Zero. Positive
* CCI.14: +104.2. Marginally into Overbought territory.

The Stochastic has been joined in overbought territory by the CCI.14. The stochastic can remain in the overbought zone for long periods of time as seen back in October. Momentum is falling as indicated by the MACD Histogram.

At this stage, this looks like consolidation. A big down day on heavy volume would negate that. Long upper tails on the last three candles indicate selling pressure.

The Index remains within the confines of close support and resistance lines. 11897 and 12810. That’s a relatively narrow range. A break either way should determine near term direction.

In the weekend report, I suggested a watch on both the Dow Industrials and the AUD/USD to get an idea of short term direction. The currency pair remains in consolidation mode – but the candles are bearish.

Caution

Redbacka