Nasdaq100 had the (relative) best performance last night. The spinning candle shows heavy selling early in the session, followed by some buying support. So the market could be looking at some support tomorrow. NDX lead the market down - so that's an important development. IBM, which is the second biggest stock in the Dow 30, was up over 3% last night, so it wasn't all doom and gloom. SPX, Dow 30, and Transports are all now below their 20-Day MAs, but still above their 50-Day MAs. So the damage so far in those three key indices isn't too bad.
Here's a more detailed chart of the SP500:
The chart is at the confluence of the 50-Day MA and a major horizontal S/R Line. The odds favour a pause or perhaps a small rebound here. Indicators are not seriously oversold. CCI is just below -100 and RSI is a little below 40. I think we'll see those much lower before the Bears are done for. The big negative divergences on the MACD and Money Flow are evidence for a serious trend change.
Commodities:
The CRB Index is in a sideways consolidation. The only Group showing serious bearish qualities is the Precious Metals Group. Its below both the 20-MA and the 50-May, with the possibility of a negative x-over by the 20 below the 50. In my Weekly Report, I was a little positive about the short term prospects for Gold, so I think we'll see some more upward movement in the short term. The Industrial Metals Group has been in a short term uptrend, and currently hovering around the 20-Day MA. There are three "dodgy dojis" at this level suggesting indecision - but they often fail. If that happens - it's a negative for our miners.
For Australia last night on the NYSE:
Given the carnage on the American market last night, this Ozzie stuff has held up OK. BHP +0.26%, Westpac -0.16%, EWA (Country ETF for Australian Shares) +0.04%, Ozzie Dollar -0.19%.
Our market will obviously be down early in trade, but the day's action mightn't get too bad. I wouldn't be surprised to see an intra-day rebound. But it's always risky trying to predict ahead of the day's trading.
Reporting Season is underway in America. That often has market moving effects. The bell-wether for the start of Reporting Season is Alcoa, which reports tonight. JP Morgan Chase, a Dow 30 component reports on Friday. Wells Fargo, one of the biggest American banks, also reports on Friday. By the end of this week, we should have a feel for how Reporting Season is working out.
(20min delay)