Cartoonist Thursday, page-18

Thursday Morning Joe, 5 May, 2016.

In America:



Dow Jones -0.56%, SP500 -0.59%, Nasdaq -0.79%, NY Composite -0.77%, Russell 2000 -0.77%. We saw very choppy trading in America. The general trend was down until the afternoon session, when the trend was mildly up, but still very choppy. The afternoon positive note was nothing to get excited about. RSI on all indices is now below 50 which is bearish. Nasdaq is leading the way down and its RSI is now mildly oversold.

NYSE NewHigh/NewLow Ratio remains bullish at 83.9%. That figure is distorted by a large number of fixed income issues which rose as a result of safe-haven buying. New Lows are now up to 28. Above 30 and it is beginning to look seriously negative for the market. Nasdaq provides a better view on breadth. It came in well below its mid-line at 35%.

SP500 Chart:



SP500 has broken near term oblique support but now sitting on key supports of the 50-Day Moving Average and the Super Trend Line. I'd expect some sort of a pause around here. A solid rebound and this pull-back is over.

Commodities:



US$ up +0.37%. Commodities that I look at reacted predictably – going negative, but the broad market index snuck into positive territory. DBC +0.07%. GLD -0.61%. Base Metals -0.62%. Energy -0.27%. Ozzie Dollar down -0.33%. Iron Ore down -2.4%.

I can't see much there for Australia today.

RB