wednesday cranker, page-14

No report last night - internet connection problems.

In America:

Dow Industrials +1.5%
Dow Transports +1.44%
SP500 +1.55%
Russell 2000 +1.57%

Nasdaq100 +2%
Comment: A very strong day on the Dow 30 on light volume - lightest in the past six days. It looks like a short squeeze generated by action in Apple. Apple down over 4% on Monday - up over 5% on Tuesday.

NewHighs/NewLows 83/21. NH>NL. The ratio of NH/(NH+NL) is at 79.8%. The Ratio is marginally below the “Do Not Sell” Zone above 80. That's close enough. New Highs still look a bit anaemic.

Technical Comment on the Dow 30:

The Dow finished at 13115.5. S/R: 13000/13260. Broke back above 13000 last night.
Indicators:
Stochastic: 42.9. Above 20 and above its signal line. Positive.
RSI.9 is at 56. Positive.
MACD Histogram. Above zero. Positive.
MACD. Below zero. Negative.
CCI.14: +16.1. Positive.

The 10-DayEMA is below the 20-DayEMA. Negative. This x-over has a good record for keeping medium-term traders out of the market in the event of a waterfall event.

The Dow 30 broke nicely above resistance last night. Indicators suggest more upside is possible. Last night was such a big up move that I think we can expect a slower day tomorrow, possibly a little to the downside. Tuesday - bullish; Thursday - bearish? That is often how it works out. We'll see.

Intel and IBM, both Dow components, reported afterhours. Both exceeded expectations, but shares fell. In afterhours trading, Intel is currently down -2.77%, and IBM -2.48%. (I recently commented that stocks exceeding expectations but prices fall is an indication of a bear market.) That might put a bit of pressure on the Dow chart tomorrow.

Redbacka.