SP500 -1.24%, Dow Industrials -0.96%, Nasdaq100 -2.7%,...

SP500 -1.24%, Dow Industrials -0.96%, Nasdaq100 -2.7%, Russell2000 -2.35%, Transports -1.46%, DAX +0.7%

It was NFP Jobs Report in America. It came out at 8.30 a.m. NY time. Clearly the American market was very weak. Media commentators, of course, link the two events together. The market fell BECAUSE of the NFP Jobs Report. Fair enough. Have a look, however, at the German DAX, up +0.7%. UK FTSE100, up +0.7%, French CAC, up +0.79%. The European markets went up because ………. A deafening silence is heard. Make sense of that if you will. Best to watch the charts. America fell heavily. That’s all we need to know. The bearish momentum from Thursday’s Russell2000 and Nasdaq followed through on Friday – and affected the whole American market. I also posted yesterday the Put/Call Ratio which was showing signs of extreme complacency. Recent history over the past year suggests it takes a few days for that to work its contrarian magic – but not, apparently, this time. Anything would be used as an excuse to sell off – and the market did.

Here’s the more detailed daily chart for the SP500.

The break above the recent consolidation can now be viewed as a false break. These are essentially bearish (as we saw recently in the Ozzie Gold Miners Index). We also have confirmed strong negative divergences on MACD and the Money Flow Index. At least we can expect a test of the lower boundary of the recent consoldation. If the chart falls through that level, we’re probably in for a correction of some magnitude. But, let’s wait and see what happens when the test of support occurs. The American bull market has defied all efforts to throw it into reverse since the major correction of 2011. Buy-the-Dips has been a wealth-making strategy.

I’ll leave it at that for today. Full Weekly Report tomorrow.

Redbacka