International Dot Day - Thursday, page-5

Thursday Morning Joe. 15 September, 2016.

In America:



Dow Jones -0.18%, SP500 -0.06%, Nasdaq +0.36%, New York Composite -0.23%, Russell 2000 -0.06%. Indices opened in positive territory. Highs for the day were found after about an hour of trading, then chopped lower for the rest of the day. A big fall in the price of Oil was a major contributing factor, down nearly 3%, with the result that the tech heavy Nasdaq was the only positive performer.

NYSE NewHigh/NewLow Ratio has fallen into the bearish zone and now down to 42.1%. New Lows are at 22. That's not especially threatening but any move lower would see a big increase in that number.

SP500:



The SP500 is oversold with a positive divergence showing up on the MFI. The Index seems to be finding support around the current closing level. A short term upside movement is probable. The big problem for SPX is the converging 20/50 DMAs. That will produce a negative cross-over. That level is coincident with a horizontal resistance level. Powerful negative stuff. The likely scenario is that the SPX will rise up to the 20-Day MA and then fall. If, the less likely scenario, the SPX can push back above the 20/50Day MAs and that horizontal resistance level, the bulls will be back in the game.

Commodities:



DBC, the Commodities Index tracking ETF, down -0.76%. That was on the back of a poor result in Energy -2.03%. Industrial Metals went the other way +2.04%. Gold +0.34%. Iron Ore down -3.3% to finish at 55.50. That's IO's lowest in almost two months.

DBC is in a small symmetrical triangle. A break out either way should tell us more about future direction. Wait.

We should start weaker today. If the U.S. does bounce tonight, then our market could pre-empt and finish on the plus side today. I'll be closely watching the market today to see if the 200-Day MA holds as support. I expect that it will.
RB.