Weekend Charting and Chat - 7th August 2015, page-16

I see old Bob has managed to shanghai the thread - so I'd better get it back to talking about boring old stocks and indices.

Seven days down for the Dow.  Saturday brunch, 8 August, 2015.

Major Indices, Europe and America

Weak results in Europe.  DAX -0.81%, UK -0.42%, France -0.72%, Italy -0.45%.  This looks like the start of a pull-back by the Europeans.  Wednesday - big up day.  Thursday - narrow range day doji candles.  Friday - down day.  That makes a three-day candle reversal pattern.  Ideally, the third day should be as large in range as Day One.  But, often, near enough is good enough.



In America, Dow Jones -0.27% was down for the seventh day in a row.  Other results:  SP500 -0.29%, Nasdaq -0.26%, New York Composite -0.34%, Russell2000 -0.74%



Plenty of intra-day buying in the American indices (see the long lower tails).  It looks like Thursday might have been a washout - big down day on high volume.  That momentum continued into Friday.  The Dow was down around 130 points at its worst, but afternoon buying clawed that back to about 50 points down.  New Lows also dropped off from the previous couple of days.  That all looks very promising for a rebound next week.

Here’s the chart for DJ30:



DJ down seven days in a row and broke below dual support, horizontal and oblique - then rebounded.  So support held.  RSI9 is very oversold - under 30.  MFI is close to the buy zone.  If we get a solid up day on Monday, I'd say this pull back is over in the short term.

US$ and Hard Commodities:



U.S.$ flat -0.16%.  It opened higher then fell throughout the session.  That suggests that the currency is in a range, currently at the top of the range and now headed back down to the lower edge.  We'll see.  If that is the case, it will be good for our Miners and Energy producers.   Base Metals -0.39%.  Energy -1.13%.  (Movements in the Energy Complex are less dependent on movements in the US$ than the Metals, but the US$ does have some effect.)  Gold +0.45% and still struggling to form a base.


RB