Modest Falls Overnight. Wednesday Morning Joe. 5 August, 2015...

Modest Falls Overnight. Wednesday Morning Joe. 5 August, 2015

Major Indices, Europe and America



DAX +0.11%, UK -0.03%, France -0.16%, Italy -1.02%. After four days up, the Europeans are now treading water. Germany, UK and France all more or less flat. Italy was down significantly.



The American indices were all down, but the range was narrow resulting in "inside day" candles and losses were modest. DJ30 -0.27%, SP500 -0.22%, Nasdaq -0.19%, New York Composite -0.15%, Russell2000 -0.24%. It's possible that we've seen the lows for this pullback on the previous day. We need to see a solid up day in the next session.



The DJI has stalled in its fall at the first line of support. MFI is down near its buy zone. 5-Day Cumulative Trin is above 7, very bearish. So the market is oversold. Contrarians look to such conditions for suggestions that the worst is probably over.

NYMO, a measure of breadth, is still above its 200-Day MA, which acts more or less as a mid-line, and is still above zero. Those are reasonably positive indicators:




US$ and Hard Commodities:


U.S.$ rose +0.51% but that didn't affect the commodities in a negative fashion. Base Metals +0.37%. Energy +0.99%. Gold +0.2% and still struggling to form a base. Iron Ore, however, was down, -0.5%

We’re now in reporting season in Australia. Yesterday the spotlight was on Suncorp. The market responded positively to its report with the stock up strongly, +1.54. Tomorrow is a biggie, with Rio Tinto reporting.

Australia was up modestly yesterday and still struggling to get above the very significant resistance level around 5700 (give or take a few points). Yesterday, the XJO finished at 5697.9.

Yesterday also saw a significant milestone reached in our market with CSL nudging above $100 to finish at $100.77. Stocks are often attracted to big round numbers. So that might be it for CSL in the near future. The stock is very overbought with an RSI at 76, so it will probably struggle for a few days. Here's the chart:



RB