In Australia yesterday: [IMG] Australia finished down -0.33%....

In Australia yesterday:



Australia finished down -0.33%. The market was modestly positive early in the afternoon, but a late afternoon swan-dive saw the XJO fall heavily.

The fall in the market was mainly due to falls in the blue chips.

Breadth remained positive. Advances/Declines Ratio 1.24. AdvancingVolume/DecliningVolume Ratio 1.3%.

The XJO fell at overhead resistance. That resistance level helped the sellers induce their fall (for whatever reason). It looks like something to do with EOFY shenanigans, but you never know for sure.

Overnight.

A similar fate to the XJO awaited the American market. It was well up at 3.00 p.m. NY time, but fell sharply. In the case of the U.S. market it probably had something to do with the Quarterly End.


Dow Jones +0.23%. SP500 +0.08%. Nasdaq +0.09%. Russell 2000 -0.12%. Germany +1.06%. The German result was influenced by the early rise in the American indices, but it closed before the Americans sell-off.

Dow Jones



Dow Jones continues to hold above the 200-Day EMA. The short-term trend channel has flattened out. Two of the three indicators show buy signals. I’d like to see the short-term stochastic move above 20 before feeling 100% confident that we’re looking at a rally. Short-term Stochastic currently stands at 13.2. Not far off.

Commodities.


Base Metals -1.01%. Energy +1.36%. Gold +0.36%. Copper Miners +2.29% defied the fall in the Base Metals price. Those results are promising for our Resources on Monday.

I think we’ll start the new Financial Year on a positive note on Monday.

RB