In America,
Nasdaq Composite -0.33%. New York Composite -0.47%. Russell 2000 -0.41%. Dow Industrials +0.1%. SP500 -0.28%.
The markets were generally well down at 11.00 (NY time) but intra-day buying pressure pushed the indices up with all of them showing some sort of “doji” candlestick. After many days of bulls being in the ascendancy, the old bull/bear battle is now being played out. The odds are tilted a little in the bears favour here, but they need to have a decisive day to prove their mettle.
Here’s a detailed chart for the SPY, tracking ETF for the SP500:
I’ve shown the SPY because we can see more clearly the intra-day gaps which have occurred along the way. The last one I marked as a possible exhaustion gap back on Friday. Well – the bulls have certainly become tired. Exhausted? They still have some fight left in them – but not much. Of course, they might gather their strength once again and push on. We’ll see.
Money Flow Index is at an extremely high, overbought level. Rarely do major reversals occur under such conditions. We usually need to see a negative divergence – a higher high on the Index with a lower high on the Indicator.
Commodities:
Under the major influence of poor oil prices and a lower US$, the CRB was down -1.11%. Industrial Metals Group also performed poorly -1.18%. Copper was down -0.95%. Iron Ore -0.9%. GLD +0.06%. US$ -0.26%
Oz stocks in New York:
BHP +0.41%. Rio -0.34%. Westpac +0.13%. ANZ +0.86%. EWA +0.56%. Ozzie Dollar +0.66%. Most of the positive performance of the Oz stocks can be attributed to the strong Oz Dollar.
We finished positive yesterday, but there wasn’t a lot in it on a low volume day. Volume should return to normal today, but I can’t see much excitement occurring. Miners should be down on those commodity figures. CBA will release its quarterly update – so that could materially affect the banks which are the biggest influence on our market.
Redbacka
(20min delay)