Finspiration Australia. Objective analysis of the Australian stock market and overseas markets.

 Thu. 20/1/22.  American market finishes well down.

Overnight.

Dow Jones -0.96%.  SP500 -0.97%.  Nasdaq -1.15%.  Small Caps -1.74%.  Banks -3.14%.

Most of these indices are approaching or are at support levels.  CCI on the Nasdaq is showing a positive divergence.  We could see a bounce to the upside in the next day or two.

SP500.

SP500 is close to multiple supports:  horizontal support from December lows, congestion zone back in late August and the bottom of the Ichimoku Cloud.  That's powerful support.  I'd expect that support to hold.

If it doesn't, then the SP500 will have formed a large head-n-shoulders formation which would probably lead to much lower levels.

Also on the plus side, the Index is well oversold with an RSI reading in the low 30's.

Commodities:

Commodities Index +0.55%.  Energy -0.63%.  Base Metals +0.96%.  Gold +1.59%.

The big jump in the Gold price is evidence of extreme fear entering the market.  That's not necessarily a bad thing.

Iron Ore +2.3%.

With Base Metals and Iron Ore both positive - that's a plus for our miners.

After 30 minutes of trading, XJO is down only -0.05%.  We could well end up positive today.