The S&P/ASX 200 Index eventually closed down 6 points or 0.17% lower to 4044 points today, after a relatively volatile day that saw the market diverge from overnight market directions.
The index is still below short term resistance at 4150, which previously had been support, with the short, medium and long term trends pointed down, with the next target at strong support at 3850 points.
The S&P500 meanwhile lost over 2% confirming its medium term uptrend is over, with next target at 1120, the pre-QE2 August 2010 price. Note the US markets will be closed tonight due to Thanksgiving:
In Europe the UK FTSE lost 1.3%, the German DAX fell 1.4%. Overall, the European bourses are looking very weak, probably reflecting the uncapitalised banking sector, which is now more highly leveraged than pre-Lehman 2008. This is best summed up by Colin Twigg’s chart of the DJ Europe Index:
In after hours trading, the Australian SPI futures have slipped slightly, whilst the Euro and US markets are relatively quiet, lacking direction due to the US holidays. The Euro (EUR/USD) has failed a possible bullish reversal and is currently trading at 1.339 as the USD Index improves markedly, breaking out on the weekly chart:
Asian markets had a mixed day, as Japan’s Nikkei 225 caught up after closing yesterday for a public holiday, down 1.8% to 8165 points, continuing its secular bear market, whilst the Hang Seng put on 0.4% to 17930 points and the Shanghai Composite currently up 4 points to 2398 points.
In other risk assets, the AUD gained half a percent, but is still correcting against the strengthening USD and is currently at 97.40 cents, likely on the way to support at 95.20 cents.
WTI crude gained 0.4% and is now at $96.58 USD a barrel, whilst Gold was steady during the Asian session, currently right at $1700 per ounce waiting for the London session. In Australian dollars however, gold is currently trading at $1742 AUD an ounce.
Movers and Shakers
An mixed, but mainly red day on the board of the ASX, with the A-REIT sector the only big positive standout, up 2% with all other sectors steady or down.
Mainly mixed for the banks as they struggle with the funding fallout from the European debt crisis, with ANZ down 0.4%, Commonwealth (CBA) up 0.7% but still in a short term downtrend.National Australia Bank (NAB) too is on its way down, losing just over 0.5% whilst Westpac (WBC) lost 0.4% it too in a sustained short term downtrend with strong intraday selling.
Macquarie (MQG) lost 1.7% and remains in a dominant long term downtrend, with possible support at $20 per share:
Healthcare standout Cochlear (COH) was also sold off, losing 1.7% whilst its “twin” CSL also did not fare as well, and as I been saying, in the short term it has stalled at just over $31 a share as it meets resistance to its rebound, although the medium term trend is still intact (green trendline in chart below)
Telstra (TLS) gained slightly, and still remains in a solid medium term uptrend.
To the resources, and BHP Billiton (BHP) steadied in its short term downtrend as it reaches short term support at $34, although on a closing weekly basis, this appears weaker with any close below this level, on the back of poorer commodity prices, could see The Big Australian fall to its 2.5 year support level at $28 a share.
Its “twin” Rio Tinto (RIO) was up slightly, meanwhile gold miner Newcrest Mining (NCM) lost 0.35%, Fortescue (FMG) fell 1.3% likely heading back to support at $4.20 per share.
Rounding out the ASX8, Woodside Petroleum (WPL) was steady, but looks like slowly building up to a breakout as it remains in a short term uptrend with support at $35 a share, as oil prices remain somewhat resilient.