Finspiration Australia. Apple Inc. leads a big rise in Australian and U.S. stocks.

Apple reported after the U.S. market closed early Friday morning (Oz time), which produced a rise in U.S. Futures.  The Australian market, when it opened on Friday, drew encouragement from the U.S. Futures and finished well up at the close on Friday, XJO +2.19%.  Apple (+6.98%) and Visa (+10.6%) both rose strongly in Friday trading in the U.S. which lead to big jumps in the major U.S. indices, Dow Jones +1.65%, Nasdaq +3.13%.

Bonds in the U.S. were also supportive of stocks with the yield on 10-Year Treasuries falling -1.68% (prices for 10YT rising),

Yesterday in Australia.

XJO has bounced strongly off a major support level.  Yesterday's candle is a bullish engulfing candle - one of the stronger candle-stick signals.  We can expect more upside in the short-term (maybe not on Monday), but the medium-term is somewhat cloudy.  The 50-Day MA has turned down and the 200-Day MA has turned down.  The 50-Day MA is close to completing a "death cross" by falling below the 200-Day MA.  

XJO  is still a long way below the 200-Day MA and we can see a major resistance level at 7189.  XJO finished Friday at 6988.  Then we have the massive old trading range which will also provide resistance.

We'll have to wait and see how this bounce goes - and be ready to sell into any advance.

Overnight.

Dow Jones +1.65%.  SP500 +2.43%.  Nasdaq +3.13%.  Small Caps +1.55%.  Banks +1.03%.

SP500.

SP500 has bounced strongly off major support offered by the Sept/Oct low. 

Friday's action in the U.S. erased the past three days' losses in the SP500.  That takes the Index back up to resistance of the 200-Day MA and the Tenkan Sen (mid-point of the past nine days).  If that can be overcome, triple resistance lies ahead: major horizontal resistance, Kijun Sen (mid-point of the past 26 days) and the lower edge of the Ichimoku Cloud.  Tough stuff.

Commodities.

Commodities Index +0.09%.  Energy +0.36%.  Base Metals -0.9%.  Gold -0.3%.

Fear and Greed.

Despite the correction that has occurred in the SP500 (i.e., more than -10%), the Fear and Greed Index hasn't fallen into the Extreme Fear quadrant which usually precedes substantial rises in the major U.S. indices.  We might have to see Extreme Fear before we can presume we've seen "the" bottom in this market.