Roller Coaster Tuesday, page-5

Monday Morning Joe. 16 August, 2016.

In America:



Russell2000 was up strongly, +0.98%. Dow Jones +0.32%, SP500 +0.28%, Nasdaq ++0.56%, New York Composite +0.33%. The gentle up trend continues. All indices remain above the 20-Day MA, which is a measure of the short term trend. Nasdaq is once again overbought with an RSI of 71.45.

NYSE NewHigh/NewLow Ratio remains exceptionally bullish at 96.4%. New Lows were insignificant at 9. NH/NL Ratio has been a good guide for remaining with the up trend.

Utilities Sector fell heavily -1.53% as investors moved into higher risk assets, particularly Energy and Materials (see below). The environment is clearly Risk-On. That can change in an eye-blink.

SP500:



The Heiken-Ashi Chart for the SPX remains bullish but momentum has slowed. Negative divergence is showing very clearly on the Money Flow Index.

The Bollinger Bands on the long term Stochastic (50.10.10) have squeezed tightly together. This usually occurs before a big move. Given the state of the current trend, that is likely to be down.
A break below the 20-Day MA would suggest a short term down trend.

Commodities:



DBC, the Commodities Index tracking ETF, up +1.65% after Energy (+2.13%) did very well. DBC has risen above horizontal resistance. Next obstacle is the 50-Day MA. Any pull-back is likely to be bought. Industrial Metals up +1.18%. Gold up +0.35%. Iron Ore went the other way, -0.3%.

The American market dropped a little in the last hour or so of trading. But our Materials Sector should benefit from movements in commodity prices. It will then be up to the banks to move our market.

RB.