Global Equity Decline Pulls Down US Markets
U.S equities have joined the sell off started by the drop in the Shanghai Composite Index. The volume ratios are indicating heavy selling, as technical trend lines in place since last July are broken.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity derivative products are indicating heavy downside momentum for the e-mini S&P 500 (EPH7), the e-mini NASDAQ 100 (ENQH7), the DJ Euro STOXX 50 (DSXH7), and the Dow (DJI).
The Q.NYSEVolRatio is flashing a reading of just 5.88 % up-volume and the Q.NASDAQVolRatio is just 10.7 % up-volume, both negative signs.
The MACD and the RSI reading for the CLEG7, Crude Oil for February traded on Globex, is indicating a short-term up trend.
The RSI for Gold (GCZ6) and the MACD action is indicating a sideways trend.
Yields are down in the Treasury market today due to flight to quality concerns.
The EUR/USD pair is trading in a short-term up trend based on the MACD and the RSI reading.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows an extremely weak market with the up-volume portion of today’s trading coming in at just over 5-percent.
Yesterday, the NASDAQ 100 index and the NASDAQ volume ratio readings were diverging in the morning, which looked like a possible good sign, but then the volume ratio rolled over and broke support. Today’s 10-percent up-volume reading indicates broad based selling.
Watch for the two exchange volume ratios to diverge with the price action before thinking a bottom is near.