General market conditions

EMA(10) of NYSE Advance/Decline - the last divergence was in July. Neutral.

McClennan Summation index has crossed above 0 in early October (bullish). However, it peaked around 700 in early November and is now at 178, heading back towards the zero line.

EMA(10) of NYSE New Highs/New Lows index:
- last bearish divergence was in May 2011. Neutral.
- extreme low on October 3 suggests market bottom (bullish).
- has crossed above, below and above again in the last 6 weeks (may be bullish).

MA(20) of NYSE stocks above 200-day MA has crossed below the 50 line in early September (bearish).

MA(50) of CBOE Put/Call ratio has crossed above 1 in November (bearish).


CORN has found support at 38.50 and had a reaction that took it to 40, but it didn't last and is now consolidating at 39.19. Trend is down. Bearish.

IEF broke out of its channel at 105 but the breakout failed the next day. IT's been in a narrow range between 103.30 and 105. If this is a flag its pole is 101 to 105 and would suggest a move from 103.30 to 107.30 if it breaks above 105. Trend is up and recent action does not look like a typical top. Bullish.

KO has found support at 64.30 and had a violent reaction to 68. However, in the last two days each opening jump has been followed by steady selling. I think this was a short squeeze. Trend was up but has been sideways for 8 months. There is a possible head and shoulder, but a confirmed break above 68.50 would negate it. Bearish.

UUP has had a bearish island reversal in the last 10 days but the last 3 days have seen buying pressure during the days. I still think the May-August double-bottom hypothesis holds. Support is at 22 and resistance 22.60.  Bullish.

XLP has jumped to test the resistance level of 32 set at the May peak, but it has only passed it in intraday trading. I suspect the latest gap up will be faded but for now the outlook is bullish.  The 31.25-31.50 area should serve as support.