trading inside wednesday, page-41

Pauley - Very clever.

In America:

Dow Industrials +1.68%
Dow Transports +2.14%
SP500 +1.81%
Russell 2000 +2.08%
Nasdaq100 +1.91%

Comment: Dow 30 had a wide range day up on heavy volume. The last hour was very strong. The Dow 30 was up 218 points on the day - with over half that occurring in the last hour. Volume in the last hour on the SPY (tracking stock for the SP500) was extremely heavy - much greater than anything seen in any other hourly period in the last 10 days.

It was, of course, Fed Day. The main points from the announcement were:

1. Labor & Spending Improving
2. Inflation Stable despite Crude Oil
3. Continued Accommodative Stance
4. Low Rates Expected to Late 2014

Those are all supportive of the stock market.

NewHighs/NewLows 202/8. NH>NL. The ratio of NH/(NH+NL) is at 96.2%. This remains in the Do Not Sell Zone above 80%.

Technical Comment on the Dow 30:

The Dow finished at 13177.7. Horizontal support now lies at 13060.
Indicators:
Stochastic: 75.9. Positive
RSI.9 is at 72. Above 70. Caution.
MACD Histogram. Above zero. Positive.
MACD. Below zero. Negative.
CCI.14: +208.7. Caution.

CCI is now at its highest level since early July 2011. Above +200 is danger territory; but it can go higher. No major retreat should be expected in the Index until we see a clear negative divergence on this indicator. RSI.9 is in cautionary territory. But going short right now might be hazardous to your wealth.

The Transport Index has broken out of its down trend channel. Indicators are rising and still not in danger territory. So there may be more upside for the general market.

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