The S&P/ASX 200 slumped again on the open, from the very poor performance of overnight equity markets. The market is now 1.7% or 77 points lower just after midday to 4505 points.
Other Asian markets have similar losses, with the Nikkei 225 down 1.5% at 9914 points, and the Hang Seng down 1.75% at 21,957 points.
Other risk assets are mixed, with the AUD falling sharply to 1.0585 against the USD, whilst gold shoots higher to $1553 USD an ounce. WTI crude is down 0.5% to $94.61 USD per barrel.
Movers and Shakers
It’s deep red across the board. The banks are being heavily sold off, especially Macquarie (MQG) down 4.6%. CBA down 1.7%, ANZ down 1.8% whilst WBC is down 1.5% with NAB leading the sell off, down 2.6%.
BHP is now down 1.7%, at $43.52 and RIO also down 1.8% at $81.62
The only stand out winner amongst ASX200 stocks is Macarthur Coal (MCC), up almost 40% on takeover, with EWC powering ahead, up 8%.
The biggest losers continue to include most of the resource sector, suffering losses between 3-8%.
The daily chart shows yesterday’s reversal has turned into a “dead dog rollover” today (intraday, this rollover is stark!) with support at 4600 points failing completely. The next target level is approx. 4530 points (the closing low of the Japan Earthquake) and then 4475-4500 points (the lows reached in the recent correction).
My long term system is still displaying “don’t go long here” signals with a weekly close below the 4475 point level changing my market stance to “bear market”, from “sideways market”. Interesting times – and yes, I am short the market and adding…