Thursday, August 14, 2008

Don't forget the NYSE

Headline charts points to the lack of participation of the NYSE index to the rally. I think small caps have greater relevance for supporting an advance (which are doing very well), but it's one to keep an eye on as it was an index I had ignored and hadn't realised it was struggling.


Yesterday's action looks to have created new bearish rising wedges for large cap indices. Note the bearish divergence in slow stochastics and sell signal with the bear cross of -DI over the +DI as 50-day MA fails as support. Bad omens, but it's dependent on price breaking rising support of the wedge.



Dow theorists will be watching the transports. Similar bearish wedge to the Dow, although it trades above both 50-day and 200-day MAs.


These are the watchpoints for the rest of the week (in addition to HeadlineChart's NYSE).


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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