The correlation between the DOW and the ASX is uncanny, to say the least.
On up days, the ASX tends to gain 1/6 of the results achieved on Wall Street (ie: yesterday, the DOW was up 132, but we rose 21).
On down days, however, the correlation is closer to 1/3 -50% (ie: today, Wall Street was down 40 points, but so far, the ASX is down 21 points).
Then, on anticipatory days, we tend to factor in a DOW down day ahead of time, only to return the next day and take the double whammy (ie: if indeed Jolly's postings have turned the DOW down).
Admittedly, these observations are more visual than analytical in nature. But, it does appear to me that the Australian market is clearly under-performing the USA market generally, as well as on the upside, whilst out-performing the USA on the downside.
Simply some casual observations, for now, but they could be worthy of further assessment in due course.
For now, today appears likely to end on a down note, with a more adverse percentage impact than what was experienced overnight in the USA.
