daytrade diaries... tuesday

Morning folks.

Market wrap: cracks appeared in the week-long global rally overnight as US markets surrendered early gains to finish in the red for the first session in five. The Dow, up 160 points in early afternoon trading, finished down 0.1%. The Nasdaq lost close to 2%. REITs were hit hardest, with the US index falling nearly 6%.

Oil and gas miners bucked the US downtrend after crude oil shrugged off OPEC's decision not to cut output. Oil rallied strongly during the session to a 10-week high, up 2.5% at $47. Gold drifted 1% lower to $922. The big action was in base metals, with significant gains across the board. Copper broke to a new high for the year.

Our futures faded with the US but the SPI closed up 8 points at 3378.

There are mixed messages there for today's local session. The US last night put in what to a candlestick charter looks like a classic topping-out pattern, suggesting the current bear-market mini-rally is close to over. But the moves in oil and base metals should support our miners - the sector is definitely worth a close look today. Elsewhere, it may be time to take profits.