rate cut - tuesday, page-3

Above is a Candle Stick chart for the SP500.

In America:

SP500 -0.15%
Dow Industrials -0.3%
Nasdaq100 -0.01%
Dow Transports -0.77%
Russell 2000 +0.3%

Comment: After last Thursday’s flurry of activity to the upside, the market is taking a rest – narrow range, low volume.

NYSE NewHighs/NewLows. 206/111. Ratio: 65%. NL
Technical Comment on the SP500 (closed at 1707.14)

Indicators:

MACD Histogram: Marginally above zero. Positive.
MACD: Above zero. Positive.
RSI.9 is at 72.5. Overbought.
Stochastic. 96.6. Overbought.
CCI.14: +157.1. Overbought. This had been over +200, but that high reading is being worked off with sideways action.

Support and Resistance:

Horizontal Support/Resistance: 1695.53 (-0.68%)
40-Day TMA: 1647.1

Not much to say. The up trend remains in place. The market is overbought but that is being worked off with sideways action.

Factors affecting Australia (mostly Materials and Energy): US$ Gold ETF, -0.52%; Copper ETF, -0.23%; Light Crude Oil ETF, -0.29%; Coal ETF, -0.8%; Steel ETF -0.1%, AUD, +0.22%. The Ozzie Stocks ETF on the NYSE (EWA) -0.26%. BHP on the NYSE +0.09%.

RBA – Rate Cut Day? The RBA broke with precedent during the 2007 election by raising rates during an election campaign. That took interest rates to highs not seen for a decade and was a factor in the defeat of the Howard government. Well - they're not going to raise rates today. But - if they cut rates, it will be interesting to see what effect, if any, that has on the markets and Labor's campaign. Another cut in interest rates would take them lower than since ....... well, for ever. If rates are cut, that should give a boost to yield stocks, but that theory hasn't been working for the Property Sector, which is looking weak.


Redbacka