Axe Throwing Wednesday, page-3

Overnight:


Dow Jones -0.01%, SP500 +0.17%, Nasdaq +0.57%, Russell 2000 +0.47%.

Dow Jones and SP500 were both well down at 3.00 p.m. (NY time) but a last hour rally brought the indices up to finish flat.

That’s two doji candlesticks in a row at the top of the rally from early May. This market is looking tired.

SP500:



The two doji candlesticks mentioned above are stalling the SP500 at a major horizontal resistance line. It wouldn’t take much now to set the SP500 into a downside move. But the trend channel remains moving up, so it’s best to wait and see how this plays out. The probabilities, however, lie to the downside.

Commodities:

Base Metals -0.26%. Energy -0.36%. Gold -0.33%. Iron Ore +0.4%.

Those figures aren’t going to make the Resources stocks very happy.

Overnight, EWA (U.S. ETF for the broad Australian market) was down -1.3%. Ozzie Dollar was down -0.49%. Australia was up +0.15% yesterday. Do the maths: to maintain par EWA should have been down -0.34%. It was down about another -1% last night. Seems like the American punters are not too keen on the Ozzie market at the moment. But what do they know? (See comment by the Venerable Hoots in yesterday's thread.)

RB