Brent oil broke technical support at $38.30 this morning but stocks are holding up:
My own view is that we are going retest the lows but you don’t need to be that bearish to see good downside here, $36, $32, $30 are all support levels.
Big iron is half happy as Dalian is closed today. But BHP is still hit -1.8%, RIO 0.4% and FMG is 1.2%:
Big gas is taking it in the team as WPL is down -0.7%, OSH -1.1%, ORG -1.5%, STO -1.7% and LNG -1.9%:
WPL especially continues to present weakly with a text book bearish descending triangle pattern:
Banks are off and running, however. Rather stupidly given if oil does slide from here then credit spreads are going to widen some more. Nonetheless, CBA is up 0.6%, WBC 0.7%, NAB 1%, ANZ 0.5%, BOQ -0.3%, SUN 0.3%, BEN 0.3% and MQG 1.5%:
Looks like a very complacent bourse to me.
