zia's 'buls and bears tuesday, page-6

In America:

Dow Industrials -0.79%
Dow Transports -1.18%
SP500 -89%
Russell 2000 -1.6%
Nasdaq100 -1.07%

Comment: A poor night on solid volume. Indices were we’ll off their lows with the Dow 30 finished above its mid-point. The Nasdaq100 had an even more remarkable turn-around, up nearly 2% off its lows. The opening gap down on the Nasdaq100 is, however, ominous. It suggests further falls ahead.

NewHighs/NewLows 100/94. NH>NL. The ratio of NH/(NH+NL) is at 77.6%. Falling out of the Do Not Sell Zone. New Highs were dominated by fixed income securities which often do well in a falling market. New Lows are now at panic sell levels.

Technical Comment on the Dow 30:

The Dow finished at 12721.5. Support/Resistance: 12492.2/12764.5.
Indicators:
MACD Histogram. Marginally below zero but turned down. Negative.
MACD. Above zero. Positive. Negative divergence set up.
RSI.9 is at 47.3. Negative.
Stochastic. 69.4. Negative.
CCI.14: -43.8. Negative.
The 10-DayEMA (blue dotted line) is above the 20-DayEMA (red dotted line). Positive.

The medium term trend is up. The short term trend is down (as measured by the 5-Day EMA). The long term trend line from early May has been broken to the downside.

I think there’s more downside in this yet. The next session might be positive but a lot of technical damage has been done. Just how far down? – at least to the lower Bollinger Band. We’ll have to reassess when that happens. The gap down on the Nasdaq100 suggests that this is the start of something more than just a short term pull-back. But let’s see how it goes. Apple Inc. reports at 2.00 p.m. NY time in the next trading session. Direction could be determined by reaction to that report. China will also come under the spotlight today with the HSBC PMI figures released today. That could also affect sentiment.

Redbacka