Dow

I don't like the chart. Volume decreasing, double top at the all important 10K number...<P>

elliot wavers: is this an extended 5th?

maybe she'll pause for a breather before ultimately turning all this churn into support.

 

interesting divergence with the dow relatively strong, the ndx weak and S&P somewhere in the middle.

 

i'm torn on this. i am absolutely bullish on the dow. I know that there is lots of resistance at 10k. this long run up looks like it's rolling over...

 

Joe Kernan made what I think is a good point yesterday. The big money - funds, institutions, etc. - have made their money this year and are going to sit on it. Few are into taking new positions. Some tax loss selling and a little repositioning, but that's it. And that's what I'm seeing in the stocks I follow. Very little energy anywhere.

 

Maybe the big guys are making a flight to quality to preserve their gains - exiting high beta stocks and moving into the larger dow stocks until year end.

 

It looks more like a wave # 9 . short term direction will depend on Thursday numbers.
Technically we should see price close or below 9900 within a week, possibly on Monday. Second of double tops was just a failure .
Very short term , it may sell off today past 13:40.
Walter

 

%%%%%
QQQ is sideways, but still near 50 ema;
& SPY, DIA, $INDU look reasonably uptrendy, but took part of position off because of QQQ.

Looks like extended 5 wave ,which is permitted.

Actually couldnt find that much selling at 10k;
SPY went down less than 1% in September & -trend still friend

 

Look at the volume on atml, seems to be a lot of unloading.

 

When you look at all 30 components you will get a better picture.

It is known as printing or painting the tape

As public mostly knows about the Dow only, it is a very effective way to make the case for "the market is holding up well".

Dow is a simple average of the prices of its components and no weighting on market cap. Thus pushing one single component (in this case IBM) can have the effect of holding up Dow easily.

Maybe option expiration related, maybe distribution in progress, who knows

 

Well. it came sooner then I thought . It may go to 9850 now. Unless they just flushing out longs and numbers will be good tomorrow.