Back below July highs, suggesting broader trend still down

Rivkin Investment Team

Firstly, we upgraded our internet security overnight, which has caused some unforseen interference with our data and charting software providers. As such, we have not been able to update the charts in the report for this morning.

To the markets, and US equity markets closed the day lower on Thursday, with the Dow Jones dipping 30.72 points (-0.29%) to end the session at 10,467.16, while the S&P500 closed 4.60 points lower (-0.42%) at 1,101.53. Looking at the intra-day price action, stocks sold off heavily throughout the morning session, before recovering into the afternoon.

From a technical perspective, both markets have traded back below their respective July highs, being 1,099.46 in the S&P500 and 10,407.82 in the Dow Jones. In our opinion, with the wave structure now overlapping, we believe the entire July advance is best labelled as an ABC correction, suggesting that the broader trend remains down.

The ASX SPI200 (Sep 10) futures contract closed 17 points lower at 4,477, after trading as low as 4,443.

The US dollar was largely weaker, declining 1.50% against the Swiss franc, 0.82% against the Aussie dollar, and 0.65% against the Euro.

From the major commodities, and Crude Oil for September delivery is currently at US$78.32 a barrel, while spot gold is currently trading at US$1166.10 an ounce.