XJO down -0.71% today after a poor result in the Dow Jones and then worse than expected inflation figures released today.
Below is a chart for IOZ, the largest ETF tracking the XJO.
IOZ remains neutral with two yellow Super-trend Lines and one Blue Super-trend line.
Point of Control lies at the top of the IOZ Value Zone - so that is likely to cause some degree of resistance if the chart does turn up.
The chart is back into a congestion zone after breaking out of it yesterday. But today's "kicker" candle is a bearish signal.
Expect more to and fro within the Value Zone.
Three sectors were up today and eight sectors down.
The only positive sectors were Information Technology (following the Nasdaq up) +0.77%, Energy +0.53% and Utilities +0.25%.
Worst performer today was the interest rate sensitive Property sector, down -2.04%. With inflation still a problem, the chances of an interest rate cut in the near future appears to be nil.
Discretionary -1.46% also felt the brunt of the inflation figures. People will tend to pull in their spending with interest rate cuts off the table. That is, of course, just what the Reserve Bank wants. People to pull in their spending. So - paradoxically, does that mean, we could get an interest rate cut sooner than expected? Stay tuned for that one.
Dow Jones Futures are flat +0.01%. Nasdaq Futures +0.4%.
Looks like Technology is back in favour after Nvidia had a hissy fit then recovered somewhat last night.
The wonders of the stock market will never cease to amaze - better than TV any day.
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