<font color=green>The Indexes - Weekend Edition
Charts are updated on my web site, under Index Charts.
www3.sympatico.ca
The Dow Industrials
On the Daily, check out the Stochastic cross over in the Overbought zone, with the ADX falling. That's not good.
CCI may be about to drop below the 100 level.
This is normally a sell alert signal for me.
i.e. If I'm holding, I become especially vigilant for other sell signals.
On the Dow Weekly, it's still hugging the lower, inner, blue, down-trend channel line.
ADX still falling or flat.
Stochastic still bearish.
Not good.
The Nasdaq Composite
On the Daily, price is right at that 1800 support, again.
ADX has gone flat and Stochastic has just made a bearish cross.
That's not good.
On the Weekly chart, the Sell signal (price below 20 week MA and DMI confirmation) could be ominous. It was a bad idea to hold long positions, after the last confirmed Sell signal (September 2000). Perhaps it won't be as bad this time, but maybe it will. Based on this chart, I'd say an investor would have better odds choosing a colour at the roulette table.
Falling or flat ADX (may be turning) and bearish Stochastic. That's not good, unless that ADX is turning up, signalling the start of a new trend, and then MACD would become the indicator to watch. It's not looking very promising, either.
The TSE300
On the Daily, you'll see I've added a downtrend channel; Resistance in red, Support in green.
Generally an ugly chart. I'll be watching for a break, one way or the other, of that channel.
An optimist might say that with all the indicators looking bad, the next move for any of them would have to be an improvement.
On the Weekly chart, price is right at that 7500 support.
There appears to be much room for this index to fall.
It hasn't broke below that support or the 20 week Moving Average, yet. Until it does, there's always a chance it will rally from here.
Capital preservation and patience, still very important in this market, as I see it.
Cush |
