Overnight, European and US markets had very solid sessions. Major US indices faded a bit into the close but still posted some good numbers – Dow Jones +2.9%, S&P 500 +3.4% and the Nasdaq Composite +3.3%. Our market opened strongly in lieu of this, but quickly did an about face and sold off for the rest of the day to close basically flat. The XJO ended up just 5.1 points for the day. It was a different story for the week which saw it put on 211.39 points to register a 5.1% gain – reportedly its biggest gain since July 2009, though I haven’t verified this. Sectors were mixed. Several factors point to a pause at these levels for the market – overbought, slight divergence, price in a resistance zone, a weak close today, so it would be no surprise. But as they say, expect the unexpected. Some big announcements still to come out of Europe, reporting season still in full swing in the US, interest rate cuts on Mebourne Cup day? – should be an enthralling week. Have a great weekend.

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