The humble ASX wasn't bragging about its performance this...

The humble ASX wasn't bragging about its performance this week.

Well, it had nothing to brag about, down -0.97%. A spokes-person (who wanted to remain in the shadows) quite rightly said in the XJO's defence, "Well, ummm, you have to remember, it is September, we can't expect to be up every month of the year, and September is one of those months when we could be down."

Mr Anonymous, down in the peanut stalls, shouted, quoting Mark Twain, "Yeah, the others are January, February, March, April, May, June, July, August, November and December."

Without further ado, let's get into it.

Yes, as already stated, XJO was down -0.97% this week. Below is the chart for STW, an ETF tracking the XJO.

After the big down day on Wednesday, STW is in a down trend. It hit the 10-Day MA on Friday and intra-day selling knocked the top off a bullish candle.

MACD histogram is in negative territory as is the Force Index.

Given events overnight Friday in America - expect further downside.

Dow Jones

Dow Jones is in a down-trend, below the short-term Bollinger Bands (10/0.8).

Indicators are all below their mid-lines. Expect more downside in the Dow Jones.

Horizontal support lies at 39813 well below the magical 40,000 area. DJ finished at 40345 on Friday. That means a further fall of 1.3%. After that support, we have further support at 39310, then the low of the early August low of 38703.

Momentum is clearly to the down side, so a fall to at least the first level of support at 39813 seems assured.

ASX Sector Performance

The big winners this week were Financials (XXJ) +2.59% and Property (XPJ) +1.23%. Those two sectors are interest rate sensitive sectors. Technology (XIJ) was also up +1.02% rounding out a trio of positive Sectors. Bonds (IAF), which is not a sector but an investment alternative to stocks, was up +0.36%. Bonds are also interest-rate sensitive. As interest rates fall, Bonds go up.

Those positive sector responses are reflective of U.S. interest rates - not the expectation of interest rate drops in Australia - see below.

The two resources sectors were smashed. Energy (XEJ) -9.07%, Materials (XMJ) -5.82%. Gold, a sub-index in the Materials, followed to the downside -4.86%.

ASX RBA Rate Tracker

The ASX web-site uses the 30-Day Cash Rate Target to project expectations of an interest rate change by the RBA. The chart rose on Friday to a 20% chance of an interest rate chance in September by the RBA. That implies little or no chance of the RBA announcing an interest rate change at their next meeting.

Long-Term Investor Index

The 10-Day MA of my LTII remains bullish, with the 10-Day MA of Highs remaining above the 10-Day MA of Lows.

The 10-Day MA of Lows is, however, rising strongly. This needs monitoring. A cross-over of the red above the blue would be bearish.

LTII is a lagging indicator, but helps long-term investors on the right side of the market for most of the time.

That's all for this week.

Watch the charts and take care.

RB