Market Comments. 10/6/2010

The market (XAO) was up today by 1% - on higher volume than we've seen the past few days - but still nothing startling.

Welles Wilder's DMI is still showing a market in a downtrend. (DMI- still well above DMI+). The ADX remains elevated. Recent sideways to up action appears to be a counter trend rally.

On the other side of the coin, the action in the newhighs/newlows yesterday showed a promising break higher and today made a decisive move higher. This chart is based on the net number of stocks in the 50-Leaders making new 20-day highs or new 20-day lows. It is a measure of the internal strength of the market.

So - we have a market showing some strength.

The bottom line is - it is still in a trading range.

Up- above 45o0

Down - below 4300

Those are very rought figures - and a decisive break either above or below resistance/support is required.

Cheers

Red