…The DOW broke below the 10,750 support line last week on the largest weekly volume (distribution volume) since October. It is making an attempt to recover the line today but is now using the level as resistance. Looking at the chart below, you can see how the 10,750 line has been used as support and resistance numerous times since early 2004. The price relative to the S&P 500 is still sitting at multi-year lows so don’t expect this index to lead the market any time soon and don’t place your analysis in the hands of a laggard index. Continue to monitor the NH-NL ratio which finished at 273-54 last night, well below the critical 500 new highs needed for a strong rally.
Looking at my monitor at 2:30pm:
The stocks in my portfolio are showing a profit.
The majority of the stocks on the MSW Index are in the black.
Today’s MSW % gain leaders (2:30pm):
(CTRN) – Citi Trends
(VIVO) – Meridian Bioscience
(CRDN) – Ceradyne
Image enlarges to “real size”.
– Piranha
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