Comment: Somebody hadn't read the script. It called for a modest pullback - not the mammoth one we saw today. :)
There was a touch of panic in today's action. It started down modestly - rarely do such days end in a rout. But that's the way it was today - on big volume. Recently I was saying that we probably needed a couple of panic selling days to wash out the last bears. We might be seeing that now. The reversal today happened at the major resistance level set up by the February high. The chart remains in the gently sloping down trending channel.
The Materials Sector -3.12% and Energy Sector -2.39%. All nine S&P Sectors were down - all of them by more than -1%. The two relatively strongest sectors were both defensives, Utilities (-1.03%) and Consumer Staples (-1.02%).
The Banking Sector was down a massive -4.11%. Semi-conductors down very strongly -3.03%. One has to wonder about that Banking figure. Are there rumours around about financial difficulties? - and was that the reason for the general market fall today? I don't know - but it makes you wonder.
Europe: France -1.05% Germany -1.05% London -1.02%
EWA (Australian Shares ETF traded on the New York Stock Exchange) was down -2.32%. The Australian Dollar was down moderately , -0.54% to finish at 106.1. The line in the sand for the Ozzie is looking more and more like 105. A strong Ozzie Dollar is needed to maintain the liquidity for a strong stock market.
Gold in Oz Dollars was up +0.81%. Gold in U.S. Dollars was up modestly +0.31%.
Technical Comment on the SP500: The SP500 finished at 1314.55. The chart is close to the bottom of the down channel. Below the 13-Day MA. That provided no support today Well above the 150-Day MA (positive). Indicators: Stochastic 41.9 and falling. Above its signal line. Neutral The 13-Day MA is above the 150-Day MA. Positive RSI.9 is at 39.6. Below its mid-line. Negative. MACD Histogram below Zero . Negative. MACD below Zero. Negative. CCI.14: -55.5. Falling. Negative.
Horizontal support exists close by at 1312 then 1294. I'll be surprised if the market falls further than that.
Well - the nervous nellies will certainly have the heebie-jeebies today. The relative strength of the Ozzie Dollar might ameliorate the fall a little, but the weakness in the commodity sectors will certainly have a big effect. The banks, which have been particularly weak lately, will probably be smashed, once again.
(20min delay)