October 19, 2017 / 1:29 PM / a year ago

BUZZ- Fractures may lead to DJI coming up lame

** DJI in the lead in Oct, closing over 23k milestone on Weds

** However, the blue-chip index finished within Fibo projection zone with momentum study at levels suggesting risk for a crest

** DJI up 3.4 pct MTD, handily beating other major indices

** NYSE Composite, S&P 500, Nasdaq Composite , and Nasdaq 100 up 1.3-2.3 pct in Oct

** Small-cap Russell 2000 up just 1 pct, and DJ Transports actually down 0.1 pct. RUT and DJT both shy of fresh records in signs of fracturing

** And DJT has so far failed right at Fibo projection resistance amid longer-term momentum divergence

** Meanwhile, just 4 stocks: Boeing, UnitedHealth , McDonald’s and Apple responsible for nearly half of DJI YTD gain

** BA, Goldman Sachs and IBM about a third of the index’s gain off Aug trough. IBM alone nearly 60 pct of DJI’s gain Weds

** On Elliott Wave basis, DJI can be in 5th (final) wave up from early 2016 low, closed within 23044.17/23250.09 Fibo proj zone. Chart:

** Daily RSI nearing late 2016/early 2017 highs, just where should reverse to keep momentum divergence intact

** Support 22630 with rising 50-DMA (now 22237)

** Meanwhile, crushed SPX historical volatility study warns of instability risk

** And IXIC came within ~0.2 pct of its resistance Weds. This as internal measures have turned down, suggesting an exhausted rise

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