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[DiscoverGold]

Weekly Technical Comments by Art Huprich - Friday Morning 12/12

"Here are the Bull-Bear advisory sentiment readings that came out on 12/10/08, along with a thought of my own. These figures are derived from investment newsletter writers and are produced by Investors Intelligence: “The BULLS rose to 25.3% from 23.1% last week. The BEARS retreated to 46.2% from 49.5% the previous issue. Market volatility continues, but the overall trend since the new five-year lows on Nov-21 (this writer deemed the 11/21/08 low “a major shakeout” pattern (false break down)] has been generally higher.”

Another “failure” to get through resistance, as defined by a declining 50-DMA and prior price peaks, by the stock market indices and more concerns surrounding the auto manufacturer’s bailout plan resulted in lower prices yesterday. At the final bell, the DJIA lost 196 points and the NASDAQ slid almost 58 points. The smaller cap indices were down over 5%. On the NYSE, volume expanded to 1.45 billion shares, not good. There were 1730 net declining issues.

One discouraging occurrence yesterday is that the S&P Bank Index (BIX/127.46), which declined 10%, closed below a short-term up trend line. If the relative strength line (lower frame) of the BIX also breaks down, it would not bode well for the stock market. Today and early next week, ought to be an important test for both the BIX and the stock market! Please use a breakdown accordingly. "

For full technical Commentary and Charts:

http://www.rjf.com/technical_commentary.asp

George.

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