Wednesday, 9 October 2013

1pm update - waiting for the two leaders to break

The two market leaders - Trans/R2K, are both holding within their broadly bullish pattern. Yet, with the Dow now having decisively broken all key supports, it would appear it is just a matter of time before the two leaders break, offering a further 4-6% lower.

R2K, daily

Trans, daily


*we have the FOMC minutes at 2pm. Do not be surprised if the market uses it as an excuse to ramp, on the notion that QE will remain at $85bn until next spring - which I'm guessing is now a given.

Regardless of the rest of today, the damage to the Dow has been done.

I'm actually somewhat bemused how I seem to be the only one who is noting that we have just seen the first lower low on a main index since Oct'2011.

Maybe I'm just not reading around enough?

Miners having problems (as ever)...

GDX, monthly

The 2008 lows look to be hit..eventually, not least if Gold/Silver continue to broadly decline into 2014. Very heavy trading volume in GDX, although a large part of that is simply due to the lower price.
- doubt a few are concerned of FOMC chatter ramping this market into the close.

Market testing the hourly 10MA, which has largely held as resistance for some weeks.