sierra's - spoiling the fun - wednesday, page-5

In America:

Dow Industrials -0.1%
Dow Transports -0.9%
SP500 -0.13%
Russell 2000 +0.19%
Nasdaq100 +0.42%

Comment: AA relatively flat night. The market appears to be consolidating.
Breadth was good withNew Highs came in at 173 while New Lows came in at 7.

The Materials Sector +0.13% and Energy Sector +0.62%. (Not much in that for Australia but better than negative.) Four out of nine S&P Sectors were up, with Energy the strongest, +0.62%. The Banking Sector was down -1.16%. Semi-conductors was was also well down, -0.99%.

Europe:
France -0.61%
Germany -0.05%
London +0.11%

Gold in U.S. Dollars is up +1.22%. Gold in Oz Dollars is up +1.72%. (This will bear close watching as Gold traditionally comes into a strong seasonal period in the middle of July. If this is the start it augurs well of Australian gold stocks.) AUD/USD down -0.77% to finish at 106.9. (Those figures are not positive for the longer term Australian market.) EWA (the ETF for Australian shares) was down very strongly -1.64%.

Technical Comment on the DJ Industrial Average:
The DJIA finished at 12569.9.
Above the 13-Day MA. Positive.
Above the 150-Day MA. Positive.
Indicators:
Stochastic: 97.2. Overbought. Caution
The 13-Day MA is above the 150-Day MA and heading up. Positive.
RSI.9 is at 71.2. Overbought. In a region where retracements can occur.
MACD Histogram above Zero . Positive
MACD above Zero. Positive.
CCI.14: +175.7 and dropping. Caution

The indicators have moved up into overbought readings. Caution. Some downside can be expected.

Chart Pattern

The chart hit resistance at around 12600 and is consolidating. I recently suggested a measured move with a target of 12570. The market has reached that target. Some retreat seems probable. A bounce off the Median Line of the Pitchfork would be positive. Let's wait and see what happens.

I think we?re back to ?buy the dips? after being in ?sell the rallies? mode since the beginning of May.

Good luck
Redb