Comment: The Dow Industrials down modestly - but generally the major indices were flat. Volume down a bit. Basically a day of indecision ahead of the jobs numbers tonight in America.
The Materials Sector +0.16% and Energy Sector -0.04%. Five of nine S&P Sectors were down ? but most were flat. Consumer Staples was the worst at -1.16%. , Utilities (-0.3%) was the second worst. Interestingly they were the best on Wednesday - the big down day. Switching out of defensives might be a bullish sign. The Banking Sector (down over 4% on Wednesday) was flat (+0.17%), a reversal day on above average volume. That's another pointer that the down trend might be over. Follow through buying is needed. Semi-conductors was flat +0.14%.
Europe: France -1.89% Germany -1.99% London -1.36%
EWA (Australian Shares ETF traded on the New York Stock Exchange) was flat -0.11%. The Australian Dollar had a good night , +0.69% to finish at 106.79. 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 down -0.85% (knocked by the stronger Oz Dollar). Gold in U.S. Dollars was down modestly -0.38%. U.S. Gold did a bunjee jump during the day's trading. It was down strongly in midday trading but then recovered a lot of the loss.
Technical Comment on the SP500: The SP500 finished at 1312.9. The chart is back to oblique down trend supportl. Below the 13-Day MA. Negative. Well above the 150-Day MA (positive).
Indicators: Stochastic 33.9 and falling. Marginally below its signal line. Negative. The 13-Day MA is above the 150-Day MA. Positive RSI.9 is at 38.9. Below its mid-line. Negative. In a zone where reversals can occur MACD Histogram below Zero . Negative. MACD below Zero. Negative. CCI.14: -135. Oversold.
Horizontal support exists close by at 1312 then 1294. I?ll be surprised if the market falls further than that.
The chart and some of the major indicators are at levels where a reversal could occur. Other factors (switching out of defensives, action in the Banks) suggest the possibility. A day of solid growth is needed. The reaction of the market to the jobs numbers out on Friday in America seems to be the key.
I'm not expecting much to happen in Australia today.
Finally - and this is a bit of a worry :) - I'm starting to see them everywhere. I'm talking about pesky broadening wedges. Here's KBE (Banks ETF, America).
(20min delay)