steppin up for ceb tuesday, page-7

In America:

Dow Industrials -1%
Dow Transports -1.65%
SP500 -1.14%
Russell 2000 -1.8%
Nasdaq100 -0.82%
Comment: We rarely see 1% down days in recent weeks. 6 March was the exception. Breadth was poor with the R2K down very strongly. Volume was low. Not a lot of conviction in the selling. The BTD Mob pushed the Dow 30 up in the middle of the day but the bears pushed back in the last hour and the indices finished poorly. Despite that Apple defied gravity +0.4%.

NewHighs/NewLows 20/60. NH>NL. The ratio of NH/(NH+NL) is at 25%. The panic button was pressed last night on a lot of sell programs.

Technical Comment on the Dow 30:

The Dow finished at 12929.6. S/R: 12781.8/13002.8
Indicators:
Stochastic: 16.8. Oversold.
RSI.9 is at 34.1. Oversold.
MACD Histogram. Below zero. Negative.
MACD. Below zero. Negative.
CCI.14: -177.6. Oversold.

Indicators are into oversold territory. If the market gets down to support around 12800 we should see a bounce. A break below that and we might then be looking at a waterfall down. At this stage a test of the 13000 area as resistance looks probable.

Today in Australia, we’ll open down and probably go sideways after that. But - you never know.

A down day today will break the 4310 support level. Unless we can break back above that level in the next couple of days, I think we’re going a lot lower.

Redbacka