OVERNIGHT Overnight, the American market was relatively flat...

OVERNIGHT

Overnight, the American market was relatively flat with a small drop in the DJ and small rises in other indices, Dow Jones -0.16%, SP500 +0.08%, Nasdaq +0.19%. DJ was hurt by a big fall in IBM.

SP500 Chart:

The short-term Stochastic and CCI are both moderately overbought. They can remain this way for longer than expected. Any pull-back is likely to be bought.

SPX appears to be in a trading range with lows around the 200-Day MA (2600) and highs around 2790. (rough figures). SP500 finished at 2709.

How will that translate in Australia today?

The flat finish in America won’t be of much interest to Australia today. Movements in Resources and Financials will be the main focus today.

Industrial Metals (DBB) in America was exceptionally strong, +3.48%; so that should flow through to our Miners.

The American Energy result was also very strong, +2.06%. So that should also benefit our Energy stocks.
Banks in America were down moderately, -0.55%.

On balance, it looks like we’ll be up moderately today.

The good result in Industrial Metals was also seen in precious metals with a high industrial use, Silver +2.41%, Palladium +2.27% and Platinum (to a lesser extent) +0.52%.

Those results in the Industrial Metals looks like a short squeeze rather than a fundamental change – so it may not continue for long.