Overnight:Serious falls in New York.Dow Jones -2.32%.  SP500...

Overnight:

Serious falls in New York.

Dow Jones -2.32%.  SP500 -1.97%.  Nasdaq -2.78%.  Russell 2000 -1.98%.

Goldman Sachs, a Dow Jones component, was down -7.46%.  Apple down -5.04%.  Amazon -4.41%.

This down-draft now sets up the possibility of a bullish, inverse head/n/shoulders formation.  It takes a fair degree of optimism on my part to be putting that out there just after such a poor performance.  But, if we get a serious upside reversal in the next couple of days, that's a possibility.  Watch.

SP500:

The relationship of the long-term Stochastic (50.10.10) and the short-term Stochastic (14.3.3) suggest that the American market might be in a "buy-the-dip" phase.  The long-term Stochastic is now heading up suggesting that underlying momentum has now changed direction from down to up.  The short-term Stochastic is now heading down.  The two indicators are out of sync and have to come back into sync.  The most likely scenario is for the short-term Stochastic to turn around to the upside in the next couple of days or so.

Commodities:

With a stronger U.S.$, there was no respite in the commodities, though it could have been worse.

Base Metals -0.56%.  Energy -0.77%.  Gold -0.72%.  Copper Miners followed stocks lower, -2.33%.  Iron Ore -0.6%.

Surprisingly, BHP in New York was down only -0.31% and Rio down -0.67%.  Australian ETF on the U.S. market was down -0.66%.  Ozzie Dollar was down -0.71%, so those losses on Australian stocks don't look too bad given the fall in the Ozzie.

We'll be down heavily at the opening.  Let's see where we finish.