yotta's - art of symetry - wednesday, page-60

Houston, we have a problem.

In America:

Dow Industrials +1.33%
Dow Transports +1.62%
SP500 +1.07%
Russell 2000 +2.19%
Nasdaq100 +0.86%

Comment: Just as the Dow Industrials was about to go into the stratosphere, it had a problem and fell 180 points in the last 90 minutes of trading.

Yesterday morning I said: "The market seems set for another test of the 34-Day Moving Average as resistance". Well – that’s more or less where the Dow Industrials started to fall last night – and fell heavily. Not good.

NewHighs/NewLows 21/23. That’s a big drop in NLs but still not enough NHs to instill confidence.

The Materials Sector +2.08% and Energy Sector +1.46%. Both sectors had heavy intra-day falls which is not positive for the Australian market today. All nine S&P Sectors were up. The best was the Materials. The Banking Sector was down marginally, -0.05%. Semi-conductors was up, +1.81%.

Europe:
France +5.74%
Germany +5.29%
London +4.02%

Gold in U.S. Dollars is up +1.26%. Gold in Oz Dollars is up +0.43%. AUD/USD up, +1.63% to finish at 99.21. The Ozzie is above minor support at 97. EWA (the ETF for Australian shares) up +3.11%

Technical Comment on the SP500:
The DJIA finished at 11190.3. Back above 11000
Above the 8-Day MA. Positive.
Below the 34-Day MA. Negative.
Indicators:
* Stochastic: 42.5. Above its signal line. Positive
* The 8-Day MA is below the 34-Day MA. Negative
* The 13-Day MA is below the 150-Day MA. Long-term negative.
* RSI.9 is at 50.5. marginally above 50. Neutral.
* MACD Histogram at Zero. Neutral.
* MACD (zero lag) at zero. Neutral.
* CCI.9: +12.2. Positive.

Close to a short term buy signal. But no cigar.

Chart Pattern:

The market was following the pattern of mid-August, but failed today at its first major hurdle, the 34-Day MA (blue dotted line on the chart). The long upper tail indicates selling.

The short term trend may have switched to the long side (unconfirmed). The Dow Industrials is in a medium term sideways consolidation (past two months). These can break either way. The long term trend is down. First line of support lies around 11000, then 10700.

I still won’t be happy with this market until I see a positive 8/34 x-over.

Don’t pre-empt the market. DYOR.

Good luck
Redbacka