Great personal stories. Thanks Costa.In America:SP500 -0.17%Dow...

Great personal stories. Thanks Costa.

In America:

SP500 -0.17%
Dow Industrials -0.11%
Nasdaq100 -0.15%
Dow Transports +0.26%
Russell 2000 +0.16%
Comment: A choppy day. Not much to say. Nasdaq100 actually looks quite good despite finishing below par – it was much lower.

NewHighs/NewLows 62/15. NH>NL. The ratio of NH/(NH+NL) is at 80.5%. In the Do Not Sell Zone.

Technical Comment on the SP500:

The SP500 finished at 1407.05. Support/resistance: 1365/1418.65.
MACD Histogram. Below zero. Negative.
MACD. Above zero. Positive.
RSI.9 is at 54.3. Positive. Broken below its up trend line. Not a good sign.
Stochastic. 85.6. Overbought. Below its signal line.
CCI.14: +58.3. Dropping below +100. Negative.

Momentum Indicators have given a consensus “sell” signal. The chart remains above the 40-Day TMA and marginally below the recent uptrend line. That trend line is the lower support line of a bearish rising wedge. And we’ve had a three-day candle reversal set-up right at resistance.

Except for support of the 40-Day TMA, everything about this says “sell” – somehow I’m still not convinced. :)

Here’s why:

Today’s action on the NDX shows a long lower tail (buying support) bouncing off a confluence of support. It needs a day of follow through buying, but that’s good action. Indicators say “sell”. Support says “wait”. Buying action today says the bulls are still in business.

One other thing. I’ve mentioned before that I don’t like situations where some things are out of kilter. Yesterday’s action in Australia was one of those. RBA cut rates. Ozzie Dollar rose. That’s out of kilter. Lower interest rates in Australia should mean a less attractive environment for capital inflows. Something’s not right about a rising Ozzie Dollar while interest rates are falling. I’d rate that as a positive for our stock market.

So – at this stage, I’m seeing recent action as just a consolidation – but I could easily be wrong. If the market decides to tank, it'll tank. It won't care a fig for what I think.

Redbacka.