Middle Eastern events and rising rates hit the market hard on Wednesday:
Crude Oil is challenging its highs.
Gold rose to a point slightly above its falling 65-dma.
All these drove the DJI down more than 300. Breadth was quite
weak. But Peerless shows an October Buy. It could still rally
2.1% from here without getting a new Sell. DIA's Closing
Power was only slightly penetrated. Its internals are all negative.
SPY is caught between its rising 30-week ma and its falling 65-dma.
The penetration of its RSQ uptrends is significant, based on how what
has followed such occurrence this past year. Its Closing Power could
still recover.
Simimilarly, the NASDAQ and QQQ show broken RSQ (Relative
Strength Uptrends) but still rising Closing Powers. The retreat
of these from their 65-dma resistance gives them the apearance
of having put in a top, after which they must search for support.
Their still unbroken Closing Power uptrends give hope for another
rally attempt, but that will depend on the FED and whether 10-year
rates do not surpass 5%. See TNX below.
Goldman Sachs, JETS and IWM have dropped back to important
support. The bulls' case for a rally will be much weakened if their
supports do not hold. Watch also CAT. Note ts bearish head/shoulders
pattern. A break by it below its neckline would cause a deeper decline
that will impact the DJI.
The other charts are posted to help new users of our Window10
candle-stick charts.
Interpretation of Charts
---- When you look at a stock or ETF, focus on the trend of its Closing Power
and Relative Stength.
---- If stock is below falling 65-dma and its IP21 is negative, don't buy, though
shorts should be covered when Closing Power downtrend is broken. Reshort
these negative Power stocks, when the minor CP uptrend-line is broken.
