xjo - weekend charting and chat, page-5

It's hard to make sense of anything out of last night's session. It was Quadruple Witching in America. aka Freaky Friday. (Read about this on: http://www.stock-options-made-easy.com/quadruple-witching.html)

As well as Quad Witching, we had Quarterly Index adjustments (Facebook, for example, included in the SP500 for the first time), the bank stress tests come out after hours the previous day, and lots of stocks went ex-dividend - which plays havoc with charts - lots of gaps down. To make matters worse - I have doubts about the reliability of the volume data on some charts from my chart provider - that plays havoc with some indicators like Money Flow Index which I usually show.

All in all, an atypical OpEx Day. It is usually a narrow range day on high volume. Today was a wide range day on very high volume - with the Nasdaq100 way down.

SP500 -0.29%, Dow 30 -0.17%, Nasdaq100 -1.11%, Russell2000 -0.44%, Transports -0.36%. I'll show the Dow 30 chart today, as it seems to be affected less by some of the events of today - and volume is believable:

Today's candle is a "shooting star" - big up then down to finish negative. I think we have to put some credence in that candle. It hit resistance and then fell heavily - over 160 points - down around -1%. That's not normal on OpEx Day. Maybe ... it can be discounted. Dunno. But - if we get a big down day on Monday, then we'll have some highly significant action. Let's see how Monday pans out.

BHP on the NYSE +0.89%. EWA +0.28%. Ozzie Dollar +0.46%. CRB Index -0.03%. US$ Gold +0.48%. Copper +0.7%. West Texas Oil +0.95%. Agricultural products, with the exception of corn, were down heavily.

There were shenanigans on the Australian market yesterday with the broad indices pushed much higher in the last hour of trade and into the after-hours auction. Some of the Gold Miners had huge volumes go through in the after-market auction. At least some of that had to do with Settlement Day after the Index Options expired on Thursday. I wouldn't take too much notice of what happened on our market yesterday.

Full weekly report tomorrow.

Redbacka