There were very few features overnight. Wall Street down but not...

There were very few features overnight. Wall Street down but not enough to confirm whether it will break out or fail.

US dollar strengthened marginally but just enough to have a slightly negative effect across commodities although there were some really weird moves out in some of the softs such as cocoa sharply higher and coffee sharply lower. Gold eased marginally so still hanging on to its first support area.

Iron ore will be able to make the headlines again today as it rallied after the previous couple of sessions of sharp falls – but don’t forget, we have the current July contract at 119.17 but July 2020 is sitting at 86.72. That is still a very wide margin. Steaming coal was weaker. Not sure if this means the start of another move lower – just need to see what it does for a couple of days.

Australia was in a really dark mood yesterday as prices came off sharply. I did mention in my previous notes that our index was getting slightly overbought but that reaction was a bit extreme. Back into support now but need to see a bit better performance today or we will have worked ourselves into a nasty little spot.

Concerns on the Australian market are not helped by the performance of Asia yesterday. Shanghai and India both fell very sharply. Goodness we need those two markets to perform a bit better.

I was anticipating that this would be a very interesting week but at this stage the markets are really being annoying and not giving me enough clear signals.