Trading Day

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The S&P/ASX 200 Index closed down 1.4% or 59 points to 4262 today, after absorbing the news that the RBA is indeed on an easing cycle, cutting rates by 25 basis points. Note the blip at 2.30pm before resuming the trend:


Resistance at 4350 points has proved too strong for the bulls, a level it was unable to breach throughout all of October, although the short term trend is not yet confirmed over:

In after hours trading, the Australian SPI futures have gained approx 23 points and is trading at 4282 points.

Asian markets had a similar day, with Japan’s Nikkei 225 down 1.3% at 8575 points, the volatile Hang Seng down 1.2% to 18942 points whilst the Shanghai Composite is currently down 7 points to its critical support level at 2325 points:

The US markets last night were generally good, rallying in the afternoon session with the S&P500 up just over 1% to 1257 points, as it heads for resistance at 1260 points:


In Europe, the markets are currently open as we wait with baited breath for another “solution” to the debt crisis, with the UK FTSE steady at 5566 points and the German DAX down 0.7% to 6060 points with both major bourses hitting overhead resistance levels.


The Euro (EUR/USD) continues to struggle, currently trading unchanged at 1.3374, which is reflected in the USD Index which has stalled and seemingly reversed its correction, heading back to 79 points:

Movers and Shakers
Carnage across all sectors today with the usual suspects (materials/financials/energy) taking the hits, although the IT sector was sold off by more than 2%.

The banks took the hits fairly well, if mixed, with ANZ down 0.3%, and Commonwealth (CBA) down 0.5%, although it breached $50 a share during the day, its meeting heavy resistance at this level (probably because its extremely overvalued?)


The other banks were sold off a little more with, National Australia Bank (NAB) down 1.5% whilst Westpac (WBC) lost just over 1%

Macquarie (MQG) slipped only 0.3%, it too hitting resistance at $25 per share, whilst healthcare standout Cochlear (COH) fell over 2% as it remains below significant resistance at $60 per share.

Its “twin” CSL also slipped but remains in a medium term uptrend at around $32 per share, just like Telstra (TLS) which lost 0.3% but in a strong position.

Again, the resources provided the meat to the swings and roundabouts, with BHP Billiton (BHP) sold off by 1.5% as it begins to form a bearish descending triangle:


Its “twin” Rio Tinto (RIO) is also weak, down over 2%, whilst gold miner Newcrest Mining (NCM) fell almost 4% as it remains in a trading range with strong support, just like the shiny metal (for now).


Fortescue (FMG) was sold off only slightly, and rounding out the ASX8, Woodside Petroleum (WPL) also lost 2%, even though oil prices and the AUD remain resilient.

The defensives Wesfarmers (WES) and Woolworths (WOW) mirrored the market and were also sold off around 1.2% each.

All eyes remain on Europe….

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