Comment: The long tails on the last three candles tell the story - intra-day, the market is under sustained selling pressure . NewHighs/NewLows came in at 46/45. Flat - with the New Lows approaching dangerous levels. The Materials Sector -96% and Energy Sector -0.66%. Those numbers hold no joy for Australia today. All nine S&P Sectors were down, Health, Consumer Staples and Utilities (all defensives) were the best. Worst was Industrials, -1.08. The Banking Sector was down strongly, -1.23%. Semi-conductors also had a poor night, -1.55%.
Europe: France -1.11% Germany -0.73% London -1.01%
Gold in U.S. Dollars is flat +0.12%. Gold in Oz Dollars is up +0.52% ? helped by a weaker AUD/USD, down 0.38% to finish at 107.26. EWA (the ETF for Australian shares) was down strongly -1.3%.
Technical Comment on the DJ Industrial Average: The DJIA finished at 12437.2. Still above support in the 12400 area. Below the 13-Day MA. Negative. Above the 150-Day MA. Positive. Indicators: Stochastic: 65.7. Falling under the 80 level. Below its signal line. Caution The 13-Day MA is above the 150-Day MA and heading up. Positive. RSI.9 is at 52.3. Working off the recent overbought reading. It might get down in the 40′s before we can see a consistent move up. MACD Histogram below Zero . Negative MACD above Zero. Positive. CCI.14: +21.7 and falling. This will probably get down under the zero line before we can see a move up.
Indicators continue to deteriorate, but most are not yet at an area where a rebound can be expected. Caution. Volume remains low. There's no conviction in the selling, but the buyers aren't stepping in. This will continue to drift lower while the current volumes persist.
The chart broke marginally below the bottom tyne of the Pitchfork. A break decisively below the Pitchfork would be a bearish signal. The low of the day finished at the 38.2% retracement of the recent run-up from late June. If this is just a normal retracement from that big run-up, the market could be close to a reversal point. But ? at this stage ? the short term trend is down.
News across the world has been negative. The Americans continue to shoot themselves in the foot over the debt ceiling, with Bernanke warning that default will probably lead to chaos. Merrill Lynch warns that the Italian debt problem could cause a major global crisis. DJs can't sell its snowballs to the Eskimos. And, to top it off, Minnesota is running out of beer. Is there any good news? Yes - Goog, in after hours reporting, has exceeded analysts' expectations by a wide margin. Maybe that will be a catalyst for a positive market.
Thanks for the accolades, BiggDaddy. I just do what I do. I'm actually a very shy, retiring type - like a Redback Spider. So I quiver a little at having the spotlight on me. But thanks for the recognition.
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