30 Days Net - Thursday, page-13

Morning Joe. Thursday, 7 January, 2016.

Major Indices, Europe and America



Germany -0.93%, UK -1.04%, France -1.26%, Italy -2.67%. All but Italy showed some intra-day buying. All are down around horizontal support with London doing the best. MACD Histograms are showing possible positive divergences. That suggests we could see a bounce here. Australia has a better correlation to Europe than America - so it could be a pointer. But let's wait and see if we get a bounce.



The rout in America continued last night. DJ -1.47%. SP500 -1.31%. Nasdaq -1.14%. New York Composite -1.59%, Russell2000 1.45%. Those figures are not as good as Europe’s, and suggest a pause while the market takes time to consider. The down trend remains intact. We have to wait on events from tomorrow.
The NYSE NH/NL Ratio is at 15.16%. The number of New Lows accelerated from 91 to 263. That's high, but could go a lot higher yet.

Here’s a regular candle stick chart for the SP500:



Near term support has broken. I've put a measured move arrow on the chart which suggests a low of 1938. Plenty of possible positive divergences are showing up on the indicators, so that figure could be unduly pessimistic - but the bears have had a good time lately. The pessimistic measured move could actually be optimistic. (I think I've covered all bases there.)

US$ and Commodities.



US$ (UUP) was down -0.27%, but that didn't help Energy -4.09% or Base Metals down -0.86%. Gold, however, kicked up +1.44%. Iron Ore fell -0.5% to finish at 41.9. UBS, according to Zero-hedge, says to sell stocks and buy Gold.

DBC, the broad Commodities Index, has been testing the down-sloping 20-Day MA and failing. A move above that would be positive for commodities and probably the American market. Oil has been the big worry in America and is the biggest influence on DBC. Energy had a huge down day yesterday and had a big effect on the stock market. That's not the only problem - but it has a big say.


RB.