DJI reaches 50 week average

Stocks have reached an important support level the 50 week moving average. It just happens to be the May and July 2011 highs.  This is a significant support area and in most cases this line should hold for some kind of bounce. The Mikey 3 and 7 are now running negative but not enough to be oversold.

 A break of this 12800 area would be very negative. I see the sell off spreading to more and more stocks. The sacred cows, the high dividend payers, are now under a great deal of pressure. MCD is at a 1 year low and is breaking a 14 month neckline. CAT is approaching a 2 year low. DJ utilities are have lost the entire years gains.

Remember that year end tax sellers will be there this year if this sell of continues.
The best course is to be in cash now until this trend can reverse.  Don't let your ego keep you in a falling market. There will be plenty of chances down the road.

Mikey

DJI Trend Summary
Daily Downtrend 13344 on 10-23 
Intermediate Downtrend  at 12400 on 11-7 2 days old
Long Term Uptrend 11315 on 11-1-10 2 years old
Last high 9-14 13653  Last Low  11-8 12811
20 day average rallies since downtrend began  0
50 day averge rallies since uptrend  began 0
IBD Market in correction 10-13 13344
 Long Term UP/ Intermediate Term Up/ Daily Trend Down/Short Term up
DJI Close 12811.32 -121.41
Step up range: 13043 - 13344
Current trading range 12811- 13043
Step down support range 12300-12966

Average watch
50 Hour Ave: 13097 Price below
20 Day Ave: 13207 Price below
50 Day Ave: 13327 Price below (do not be long if this line is red)
20 Week Ave: 13168 Price below
50 Week Ave: 12881 Price below
200 Week Ave 10973 Price above


Overbought/Oversold Oscillator(Mikey reading) +150  to -150
Take profits  at +150 readings  buy or cover at -150 readings
3 day -82 N  7 day -30 N 20 day -55 N  50 day +55
MACD Readings
MACD Crosses: Negative cross = consolidation/correction Positive cross=uptrend
Short term (50 hour) ,down (2 Hrs) signal 11-7
MACD Hourly -78.47
Daily trend (50 day) Down 12 days 10-23-12
MACD Daily -129.68 Negative cross 9-26
Intermediate trend (50 week) Down (2 days).signal 11-7 12400
MACD Weekly (+115.42) Negative cross  10-23-12
Long term trend (200 week) Up (23 months)...signal 12/1/10 11577
MACD Monthly (+519.83) Negative Cross 11/8/12.


Volume Readings
Volume (Millions) NYSE 3675  NASDAQ 1842
Advance/Decline NYSE -1409 NASDAQ -1169
Mikey NYSE A/D line +63295  Mikey NASDAQ A/D line -17421
Trader Psychology
Put/Call day 1.09 10 day .86 Put Prem/Call Prem  1.04 10 day 1.01
Bull/Bear Ratio 1.57  Bulls 43.6 %, Bears 27.7%
Mutial Funds Buy/Redeem ratio 1.15
VIX 18.49 VXZ 31.51 Trin  1.64 10 day ave 1.26
Mikey Fear 86 (20 high, 80 low)
New Highs NYSE 72  NASDAQ 34  New Lows NYSE 88 NASDAQ 117
% Stocks above 200 day ave 53% (above 50% intermediate term uptrend)


Closing Prices
 
US Stocks
DJIA 12811.32 -121.41  S/P 500 1377.51 -17.02  NASDAQ 2895.58 -41.71
DJT5054.27 -49.29 DJU451.22 -1.08
US Debt Markets
US Gov rates: 6 mo .1438% 2 yr .2736% 5 yr .6733% 10 yr 1.62% 30 yr  2.76
IEF (US 7-10 yr) 108.80 +.51 TLT (20 yr) 125.84 +1.84 High Yield 91.55 -.30
MUB(NatMuni) 112.60 +.07   Cal Muni(NCA)10.64 +.04
BND Total Bnd Ind 85.01 +.16
Commodities 
CRB Commodities Index 291.87 +.38
Gold  1726.00 +12.00 Silver 32.24 +.45
Copper 3.46 +.02 Platinum 1542.50 +3.00
Oil 85.09 +.65  RBOB 2.61 +.02 Nat Gas 3.60 +.03
US Dollar Index and World Currencies
Euro 1.2646 -.0033 Pound 1.5803 -0013 Swiss Franc 1.0405 -.0009
Yen ..012356 +.00085 Aussie 1.0411 -.0008 Canadian Dollar  .9941 -.0043
Dollar Index 80.88 +.01
 
All Market Trends:


Commodities
Gold:      LongTerm/ Intermediate Term  Daily Trend// Short term
Silver:    Long Term / Intermediate Term/ Daily Trend / Short term
Copper  :Long Term/ Intermediate Term/ Daily Trend / Short term
Oil:         Long Term/ Intermediate Term/ Daily Trend / Short term
Gasoline Long Term/ Intermediate Term/ Daily Trend/  Short term
Nat Gas :Long Term/ Intermediate Term/ Daily Trend / Short term
CRB        Long Term/ Intermediate Term/ Daily Trend / Short term
Bond Markets
US Bonds LT Long Term/ Intermediate Term/ Daily Trend/  Short term
Intl  Treas       Long Term/ Intermediate Term/ Daily Trend /Short term
Intl Corp          Long Term/ Intermediate Term/ Daily Trend/ / Short term
US Muni        Long Term/ Intermediate Term/ Daily Trend   Short Trend
High Yield     Long Term/ Intermediate Term/ Daily Trend/ / Short term
Currencies
Aussie DollarLong Term/ Intermediate Term/ Daily Trend/ / Short term
Brit PD         Long Term/ Intermediate Term/ Daily Trend / Short term
Euro             Long Term/Intermediate Term/Daily Trend Short term
Yen               Long Term/ Intermediate Term/Daily Trend/  Short term
Swiss            Long Term/ Intermediate Term/ Daily Trend / Short term
Can Dollar   Long term/ Intermediate Term Daily Trend/ Short term
US Dollar   Long Term/ Intermediate Term/ Daily Trend / Short term
Stocks
US      Long Term/ Intermediate Term/ Daily Trend/  Short term
Europe Long Term/ Intermediate Term/ Daily Trend/ Short term
Germany Long Term/ Intermediate Term/ Daily Trend/ Short term
China     Long Term/ Intermediate Term Daily Trend/ / Short term
Brazil  Long Term/ Intermediate Term/ Daily Trend/ Short term
India   Long Term/ Intermediate Term/ Daily Trend/ Short term
Emerg Mkts   Long Term/ Intermediate Term/ Daily Trend/Short term
Japan Long Term/ Intermediate Term/ Daily Trend/ Short term