Tuesday, January 25, 2022

Finspiration Australia. Waiting on the Fed.

 Overnight.


Dow Jones -0.19%.  SP500 -1.22%.  Nasdaq -2.28%.  Small Caps -1.12%.  Banks +0.49%.

SP500.


It was a wild ride on the market last night with the SP500 printing a wide-range candle with a small body (aka a "rickshaw man").  Although a wide-range candle - still not as wide as the previous session.  The past two days have been exceptional - with high volume and finding support at last year's Sept/Oct low.

The SP500 is extremely oversold with RSI(14) at 25.8.

All of this points to the probability of a move to the upside.  Tuesday's action suggests that major participants are anticipating a move to the upside - no matter which way the Federal Reserve decides to go.

Commodities.


Commodities Index +0.91%.  Base Metals +0.61%.  Energy +1.4%.  Gold +0.32%.

All four charts show a bull flag with a break to the upside last night.  That's a positive for the Australian market.

Australia is closed for a public holiday today.  We'll have to wait till tomorrow to take action on the decision of the Federal Reserve.

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