who's your hero wednesday, page-9

In America:

SP500 +1.15%
Dow Industrials +0.87%
Nasdaq100 +1.54%
Dow Transports +1.61%
Russell 2000 +1.52%

Comment: All the major indices were up. Only the Dow 30 was less than +1%. Breadth (R2K) was also very strong. Volume was good, up a little on the past two days but nothing too serious.

NewHighs/NewLows 176/19. NH>NL. The ratio of NH/(NH+NL) is at 90.3%. In the Do Not Sell Zone.

Technical Comment on the SP500:

The SP500 finished at 1446.79. Nearby Support/Resistance: 1433.32/1465.77.
MACD Histogram. Marginally below zero. Neutral.
MACD. Above zero. Positive.
RSI.9 is at 72.2. Overbought
Stochastic. 78.3. Above its signal line. Positive.
CCI.14: +205.8. Very overbought.

The market continued a strong surge today. Some indicators are now overbought and the chart is close to the top of the up trend channel. The seasonal influence is now strong. Under normal conditions I’d say it was time for a pause. But this could be going back up to the September/October highs before that happens. If the usual pattern of a late December surge occurs, then we may see a break of those Sept/Oct highs. At this stage, I don’t see anything which would make me utter one of my famous: ”I’m going to stick my neck out” calls.

BHP on the American market was up for the eleventh day in a row. Can it do 13? BHP up in New York, +0.66%.

The Ozzie Dollar was down a little, -0.1% and Precious Metals were hit hard, -1.56%. Our gold miners will be hit hard again today, but there doesn’t seem to be any other negatives. Just don't expect us to be up 1% like America.

There was an interesting bit of news yesterday in America. The Empire Manufacturing Index which measures manufacturing activity in New York State was down to -8.1. Anything below zero represents contraction. Expectations were for a much better reading. And this was the fifth month in a row when the Index was down. When the market ignores such poor fundamental news it is in the grip of a serious bull mentality. Yesterday’s news didn’t cause even a blip in the market, it just kept powering on.

Redbacka