A LOT OF 200-DAY MOVING AVERAGES ARE BEING TESTED -- STARTING WITH THE DOW -- AND SOME SECTOR SPDRS -- AND EAFE ISHARES

STARTING WITH THE DOW...Chart 1 shows the Dow Industrials finding support at its 200-day moving average for the third time this month.  That's an encouraging sign.  In addition, its daily MACD lines are close to turning positive (lower box); while its 14-day RSI line (top box) is trying to rise above its midpoint line at 50.  To makes this a successful test, however, the Dow needs to rise back over its twin August peaks near 26,400; and its 50-day average (blue line).  The S&P 500 and Nasdaq remain further above their 200-day lines; but have to clear the same hurdles as the Dow.  Charts 2 and 3 show their overhead resistance barriers.

A NUMBER OF SECTOR SPDRS ARE TESTING THEIR RED LINES AS WELL...Several sector SPDRS are also in the process of testing their red 20o-day averages.  Chart 4 shows the Financial SPDR (XLF) trying hard to stay above its red line.   Chart 5 shows the Health Care SPDR (XLV) trying to do the same.  Chart 6 shows the Industrials SPDR (XLI) going through a similar test.  And Chart 7 shows the Materials SPDR (XLB) touching its red line last Friday and bouncing off it this week.  Those are  important tests of support for those sectors and probably for the rest of the market.

SO ARE SOME FOREIGN MARKETS...Some foreign stock ETFs are also going through a test of their 200-day lines.   Chart 8 shows the MSCI EAFE iShares (EFA) struggling to stay above their 200-day average.  The EFA is also trying to stay above potential chart support along its late May low.  The EFA includes foreign developed stock markets outside of North America.  Some country ETFs testing their red lines and their spring lows include Australia (EWA), Canada (EWC), and France (EWQ).