Overnight Markets: [IMG] Major American indices finished down a...

Overnight Markets:


Major American indices finished down a little. Europe was down modestly. Dow Jones -0.07%, SP500 -0.11%, Nasdaq -0.14%, NYA -0.11%, Banking +1.31%, European Top 100 -0.25%. Intra-day buying is evident.

Eight out of nine S&P Sectors in America were down. The only positive sector was XLF (Financials), up +0.84%, led by the Banks (see above). Overall, that’s a bearish result for the market.

SP500:



SP500 finished down marginally, -0.11%. That’s ended the six day rally, but today’s candle is not a bearish trend day candle with plenty of intra-day buying obvious.

Money Flow (bottom panel) continues to be turgid and shows a negative divergence from the SP500. Such a condition can remain for long periods of time, but it means that the rally isn’t being supported by strong volume. That’s another pointer to a possible pull-back.

Here’s the biggest problem for the American market:



This chart shows the Equities Put/Call Ratio, 10-Day Average. This is a contrarian indicator. The Equities Options is where the speculative retail traders hang out, i.e., the “dumb money”. High readings – traders are very fearful – that gives a buy signal. Low readings – traders are too optimistic – that gives a sell signal. Clearly, traders are currently far too optimistic. Take the opposite side.

Commodities:

DBC +0.36%. Energy +0.13%. Industrial Metals +0.63%. Copper Producers +0.78%. Gold +0.24%. Iron Ore -0.4%.

Our market should open on the negative side today – but expect intra-day buying.