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USA

The Dow Industrial Average is testing resistance at 10200, within the consolidation pattern that started early 2004. Low volume on the rally signals a lack of commitment from buyers. 




The consolidation pattern may result in either an upward or downward breakout. Confirmation would come from a pull-back that respects support at 10500, or resistance at 10000, respectively.

Twiggs Money Flow has formed a double bottom but does not yet signal accumulation.




The Nasdaq Composite (and NDX) volume for Friday was incorrect. 
Select Securities >> Refresh Current Security From Server or fast key F2 to refresh this.

The primary trend is headed downward. The latest rally is on low volume and appears unlikely to break resistance at 1900.
Twiggs Money Flow (not shown) continues to signal distribution.





Similar to the Dow, the S&P 500 is testing resistance at the previous peak (of 1100). Falling volume signals a lack of commitment from buyers.

Twiggs Money Flow (not shown) continues to signal distribution.





NYSE Bullish Percent

The NYSE Bullish Percent Index rose to 55.48% but the bear signal continues.






Treasury yields

The yield on 10-year treasury notes is consolidating in a narrow range above 4.20%; normally a continuation sign in a down-trend. 
Expect a re-test of support at 4.00%. 

The yield differential (10-year T-notes minus 13-week T-bills) is declining but still healthy at 2.7%. 
Low differentials, of below 1.0%, are strong bear signals.






Gold

New York: Spot gold fell to $402.90. Marginal new highs indicate a lack of commitment from buyers.





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ASX Australia

The All Ordinaries rallied strongly above 3550, on increased volume. The next signal to look out for is a pull-back that respects support at 3550.




Broadening top formations may break out in either direction. They are often traded from a reversal at the upper or lower border, with stops adjusted to protect against a reversal at the opposite border. Double top or double bottom reversals near a border provide additional confirmation: see [a] and [b], [d] and [e], and [f] and [g] on the chart below. 
Note also the consolidations at [c] and [h], accompanied by a bullish pull-back on Twiggs Money Flow, which failed to cross below the signal line. A similar pull-back that holds above 3550 would be a bullish sign.







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