In U.S. Major indices finished the day mostly flat, with the Dow...

In U.S.

Major indices finished the day mostly flat, with the Dow Jones down moderately. RSI is reading bearish (below 50) on all five indices. A bearish cross of the 20/50 Day MAs on the Russell2000 has occurred. A sell-off in the last hour sent indices into negative territory.



DJ -0.++35%, Nasdaq -0.09%, SP500 -0.18%, NYA -0.11%, Russell2000 -0.08%.
Financials +0.04%.

In Europe, the Euro Top 100 Index was down -0.71%

SP500:



The SPX finished down a little -0.18%. Plenty of evidence in this chart says we’re probably at or close to a bottom. The gap at 12 July has been filled. The chart is at oblique support and opposite a congestion zone. Thursdays wide-range day looked climactic. RSI9 and CCI are oversold. Some indicators have set up possible positive divergences. Look for a solid up day on Monday or Tuesday for an end to this pullback.

Commodities:

DBC +1.78%. Energy +0.51% Industrial Metals +1.64%. Copper Producers ETF was up +0.16%. Gold -0.16%.

Overnight in the US, BHP down -2.04%, Rio up +0.72%, Westpac up +0.08%.

Here’s the biggest problem for the American market:


The best performing sector over the past 30 Days has been Utilities up +5.03%. Utilities in America acts as a bond proxy, i.e., a resort to safety when the market is shaky. Two out of the three best performers are defensives (Health and Utilities). Only a good performance by Technology +3.65% has saved the American market from a complete rout. The American market needs to see a switch out of Utilities and back into Financials, without any deterioration in Tech, for this market to continue bullish. If we see Tech start to fade away, the American market will be in big trouble. And that will cause trouble for our market which now has some degree of correlation with America.

RB.