Comment: Rarely do we see such a mixed day. The Dow Industrials retreated from resistance. The Nasdaq100 broke above a major resistance level. One of these is "wrong". Either the Nasdaq100 is a false break or the Dow Industrials will follow the Nasdaq100 upwards.
NewHighs/NewLows came in at 102/24. That?s a positive result out of kilter with the Dow's weakness and the S&P500 flat line.
The Materials Sector -0.47% and Energy Sector +0.5%. That?s mixed and says little for the Australian market today. Only three of nine S&P Sectors were up, Technology was the best performer, +0.87%. The weakest was the Industrials sector, -1.05% (Once again we?re seeing this lopsided structure to the market.) The Banking Sector was down, -0.4% after having a strong recent run. Semi-conductors had a great day, +2.43%.
Europe: France +0.68% Germany +0.5% London +0.6%
Gold in U.S. Dollars is up +0.64%. Gold in Oz Dollars is up +0.58%. AUD/USD, barely budged +0.11% to finish at 108.52. EWA (the ETF for Australian shares) was up +0.69%.
Technical Comment on the DJ Industrial Average: The DJIA finished at 12681.16. Retreated a little from resistance. Above the 13-Day MA. Positive. Above the 150-Day MA. Positive. Indicators: Stochastic: 80.2. Nudged above the overbought level at 80. Caution. The 13-Day MA is above the 150-Day MA and heading up. Positive. RSI.9 is at 63. Pulling away from the 70 zone. Caution. MACD Histogram Above Zero . Positive. Potential negative divergence may be set up. MACD above zero. Positive. CCI.9: +111.4. Overbought. Caution.
At this stage ? the short term trend remains up. Some indicators are overbought. A small pull back might be in order. But I doubt it will challenge the recent low. Earnings reports and the debt ceiling discussions will continue to grab headlines.
Yesterday I said: "The current run-up has been on the back of a strong Banking sector. Technology hasn?t shown the same sort of strength." That was reversed last night. Looks like switching between sectors?
Last night was so mixed, it doesn't provide much of a lead. Despite the positive break out by the Nasdaq100 it looks vulnerable to a pull back.
The last week of the month for many months has been positive. So this market might kick on for a few days yet. But - at this stage, I haven't a clue.:)
The trend is up. Let's stay with it.
I might have more insight when I do my big Weekly Report this weekend.
Great reading, CEB. I feel embarrassed to put up such a boring post in the Zoomba Lounge. I guess it's for the nutters over in the corner muttering about TA - and I don't mean Tats Anonymous.
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