The DJIA closed at 11,036.37 on Tuesday, a notably good showing considering the headlines.
First up, a driveby from Bespoke Investment Group:
For the sixth time in the last six trading days, the DJIA is testing its 50-day moving average. Technicians say that the more often support levels are tested, the weaker they become. If that's the case, will today's test be the straw that breaks the camel's back?
And from Investment Postcards from Cape Town:
The prices of industrial metals find themselves at crucial levels as indicated by the Economist Metals Price Index in U.S. dollar – the latest number is my estimate. The upward trend since the market bottomed in the first quarter of last year is currently being challenged.
The U.S. dollar prices of industrial metals are heavily influenced by the US$/euro exchange rate, but the drop in the Metals Index significantly outweighed that of the strength of the U.S. dollar. The drop in the Metals Index resulted in a break in the uptrend of the Index in euro.
Sources: I-Net Bridge; Plexus Asset Management.
The marked drop in metal prices, especially those of aluminium and nickel, was also echoed by very weak steel and stainless steel prices....MORE