The S&P/ASX 200 Index closed down 111 points or 2.8% today to 3897 points. The market has dropped 10 points in the after hours futures market, whilst Euro and US markets are also set to open down, and at crucial support levels. Breakouts below are likely to result in the next step down.
Asian markets were similarly affected, Japan’s Nikkei 225 closing down 2.1% at 8515 points, whilst the Hang Seng was sold off heavily, losing 4.5% to 16794 points..
In other risk assets, the AUD toyed with the 96 cent support level and is currently trading at 96.280 cents USD, whilst WTI crude lost 1.4% and is at $78.09 USD a barrel.
Gold was relatively unscathed, putting on nearly half a percent in the Asian session, currently at $1632 USD an ounce or $1695 AUD an ounce.
Movers and Shakers
Another bath of blood across the board on the ASX, with the biggest losers in the financials and materials sectors (losing more than 3%) whilst only healthcare stayed in the green – barely.
The banks were all down heavily, Commonwealth (CBA) off 3.7%, ANZ lost 3%, NAB 3.3% and WBC down the most, again, by 4.13%. Macquarie (MQG) rejoined the short party losing 6.25%
Cochlear (COH) held on, putting on 0.4% whilst CSL gained 1.2%, closing above $30 per share for the first time in 2 months, with both stocks providing the meagre gains for the healthcare sector.
CSL at 2 month high on back of weak AUD?
BHP Billiton (BHP) was slogged 2.5% and Rio Tinto (RIO) 4% – closing below $60 for the first time in 2 years:
2 years of nowhere for RIO - also because of the AUD.....
Newcrest Mining (NCM) slipped 1.5%, whilst Fortescue (FMG) also had a bad day, down 7.5%
CSL was the biggest winner on the ASX200 today – with only 8 stocks rising, whilst the biggest loser was Murchison Metals (MMX) down almost 15%.
The Charts
The daily chart below shows that price action is resisting the upper trendline in a price channel starting from the 4300 point resistance level in late August. The ASX200 has now broke solidly through the 4000 point level, with the target of 3700-3800 points possible within the week, particularly if Euro and US markets do not hold steady.
The extremely volatile UK FTSE is facing selling pressure as a Euro-wide recession is getting cooked in, with crucial support at psychologically significant 5000 points:
UK FTSE - super volatile, but bear flag has morphed into a rectangle base with crucial support at 5000
Whilst the US S&P500 is also facing the same fears, with crucial support at 1120 points:
US SP500 Index - selling pressure getting heavier
Both of these levels have been breached in pre-open futures trade.