The funk from the Atlantic reached Asian markets, with the S&P/ASX 200 Index down over 1% or nearly 50 points to 4147 points today.
The 4200 point level of resistance remains key, and the market is pushing back at any attempts to clear over this level, whilst in the intermediate, a bearish pennant has formed:
Other Asian markets saw similar selloffs, with Japan’s Nikkei 225 down 1.5% or 127 points to 8372 points, the volatile Hang Seng currently down 182 points or 1% to 19021 points whilst the Shanghai Composite has dropped, down 0.8% to 2227.
The AUD was mainly flat, slightly down and currently trading at 1.03 against the USD, whilst WTI crude was also flat, just below $99USD a barrel.
Gold saw some light bids after falling on Friday night, and is up $8 or 0.5% to $1639USD an ounce or $1594 AUD per ounce.
Movers and Shakers
All sectors in the red today, with materials and financials the biggest losers, down 1.6% and 1.2% respectively, whilst the “best” was telecomms (i.e Telstra) which was flat.
All the banks were sold off similarly, with ANZ down 1.6% refusing to breaking out of its bullish rectangle pattern, whilst Commonwealth (CBA) was again sold off below $50 per share, down 1.1% but still looking bullish on the short term charts:
National Australia Bank (NAB) was down 1.6% and remains in a holding pattern and Westpac (WBC) also down 1.5%, still lolly gagging along at support at $20 per share.
Moving on, and Macquarie (MQG) was down heavily, 2.5% as it too remains flat on the charts, whilst healthcare favourite Cochlear (COH) rebounded back onto trend, up 0.8% and just above its short term rising support line.
Its “twin” CSL fell over 1%, weakening and dicing with its long term moving average, whilst Telstra (TLS), finished flat as a pancake again, this time on good volume. .
To the resources, where BHP Billiton (BHP) was down 1.7% and still below resistance at $37 a share, a breakout above would be very bullish for the stock, and the broader index:
Meanwhile, its “twin” Rio Tinto (RIO), which had broken out of its short term downtrend last week, was down only 0.5% with news that the Chinese are now developing an online iron ore trading platform….
Gold miner Newcrest Mining (NCM) was off 1.4%, as AUD strength keeps any rises in the spot gold price steady whilst Fortescue (FMG) was down nearly 3%, still forming a very short term bearish rising wedge pattern and on very light volume.
To finish out the ASX8, Woodside Petroleum (WPL) was a standout in the gloom, up 0.5%, building on its short term uptrend and now back to October 2011 price levels, but with a looooonnng way to go.
Finishing up with the defensive stocks Wesfarmers (WES) and Woolworths (WOW) were both down, the former down 1.3%, the latter 0.8% and both on hold for the time being.
With the US markets closed tonight because of a public holiday, European stocks – and debt – will dominate newsflow. Australian SPI futures have gained slightly, up around 9 points to the 4155 point level.