Record breaking down days in the beginning of month?Yes MLS...

Record breaking down days in the beginning of month?

Yes MLS gained 7 pips to finish at 5.1c. Our volume was on higher side of average, just over 8.4m shares traded.

So what is happening - looks like Round 2 of break out. 3 weeks back we made an attempt, on a volume of over 19m shares reached 5.6. But after staying in 5s for few days we came back. This looks like another move, but the volume was lower than last time, also we reached till 5.3. I am still not sure what to make out of it, especially after last run which fizzled out. Lets hope this is a real deal - as such the price should be in 5s/6s as such based on potential. But any good announcement could take us out of wilderness.

ASX Li stocks were generally weak, some good decline on big stocks. Of the 54 stocks that I track, average loss was 2.5%.

Overnight US Li stocks were mostly green. Average gain was just over 2%. So ASX Li performed poorly. Not only we have to face a ruthless market, many reports keep on appearing at regular intervals to push us further down.


What next:
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Yesterday US markets had a 5th straight day of decline and lost around 0.2%. So the first 5 days of this month are all declines. Its only couple of other times (2002, 2011) in last 25 years that in any month we have started with 5 straight day of declines, so it has been a rarity - 2022 is writing history in many ways. ASX had a decent decline of around 0.75%.

Nothing has changed from an analysis perspective, so everything I wrote yesterday stands, hence will not repeat it. We are getting some sideways movement now on lower volume, no decisive blow from bulls or bears at this stage. Indicators are mixed and no clear direction there. On downside we need to hold 3900 on SP 500 (currently 3933), next is 3810. Upside, regain 200 day moving average, which is coming down and somewhere around 4030 or so.
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So what will happen tonight? US Futures slightly in red. Asian markets mixed. The next big economic data is on Friday - PPI data. But tonight some jobs data. Probability didn't help yesterday but after 5 red days, chances of green has increased. Not sure what will happen, difficult to predict. Most analysts are bearish, but in short term many believe there is a good chance of a bounce. Will that happen? Lets hope so. All the best.