Mid-Week Index Overview

Jun 12, 2007: 6:47 PM CST

Here are a quick charts of the Indexes:

dow-june12.png

  • Holding the Bottom Bollinger Band
  • Lurking above the 50 period EMA
  • Market making new momentum lows
  • Stochastic registering a buy signal
  • Volume increased today on the sell-day… distribution
  • Clear momentum divergence now unwinding
  • Support should be 13,200 until it fails

nas-june12.png

  • Has not reached bottom of Bollinger Band in months
  • Market recently bounced at rising 50 period EMA
  • We almost registered a stochastic buy signal
  • Momentum not making new lows and not clearly diverging
  • Price is clearly in a trading range now with support at 2,540 until broken

russell-june12.png

  • Market making new momentum lows
  • Price broke the 50 period MA – are small caps in trouble?
  • Nearing stochastic buy also
  • Price almost made a new momentum high recently – no price divergence
  • Price is also in a trading range – recently experienced a failed breakout (up)
  • Support should be near 810

Please see the Market Summary at StockCharts.com.  I could do a repost of an earlier blog entry where I pulled each segment of the daily action and everything was ‘in the red’ except bond yeilds.  This was the (almost) exact same scenario as occurred Thursday, June 7th.  Many such ominous down days (where bears take a swipe at everything) cannot be good for the overall market unless buyers find value at lower prices where everything is ‘wounded’.

Here is a teaser of the StockCharts page (each Industry was down):

indexes.jpg

Last time, the buyers found value and drove the indexes up after the “bloody” day.  The question on everyone’s mind has become:  Will it happen again?

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