Volume and breadth shrinking; stochastic issues short-term sell signal
A better retail sales number led to a higher opening on Tuesday. And stronger-than-expected earnings from Home Depot (NYSE:HD) added to the optimism. But the market didn't sustain the higher prices, as Europe's woes put a halt to the early rally and stocks sagged from noon to the closing bell.At Tuesday close, the Dow Jones Industrial Average was up 3 points to 13,172, the S&P 500 was even at 1,404, and the Nasdaq fell 6 points to 3,017. The NYSE traded 565 million shares and the Nasdaq crossed 382 million. On the Big Board, breadth was only slightly negative, but on the Nasdaq, decliners were ahead of advancers by 1.7-to-1.
Like yesterday’s chart of the S&P 500, the Dow industrials appear to be forming a triple-top. Seven trading days have topped at just over 13,200, while volume and breadth continue to shrink. On Tuesday, the stochastic issued a short-term sell signal, which could break the Dow to its 20-day moving average and a temporary bottom at 13,000. ... Continue to read.
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