Finspiration Australia. Technical Analysis of the Australian and International Stock Markets.

 In Australia yesterday.

XJO up strongly yesterday, +1.06%.  That action took the index back above the 200-Day MA.  Supertrend (1.5/7) also switched from short-term bearish to short-term bullish.

Events last night in the U.S. will probably see the XJO give up all of yesterday's gains and test the 200-Day MA as support.

It should be noted that the XJO is doing much better than the American SP500 (see chart below).

Last night in America,  Stocks smashed, led down by Amazon -14%.

Dow Jones -2.77%.  SP500 -3.63%.  Nasdaq -4.17%.  Small Caps -2.59%.  Banks -3.29%.

That's a very dismal set of figures.  But, CCI might be showing the start of a bullish divergence. 

SP500.

SP500 fell heavily last night and broke below recent support.  All 11 Sectors on the NYSE fell.

CCI is showing a small positive divergence, but nothing is showing up yet on MFI.  I'd feel more comfortable about a rebound if both indicators were showing positive divergences.

As mentioned above, XJO is doing better than the SP500.  XJO is a little above its 200-Day MA, but SP500 is about -8% below its 200-Day MA.  That's a big advantage in favour of XJO.  

Commodities.

Commodities Index -0.76%.  Energy -0.39%.  Base Metals -1.82%. Agriculture -1.08%.  Gold -0.01%.

No joy in those figures for Australia's big resource companies.

NY Advance-Decline Line.

NY A-D Line remains bearish.  It turned down in November well before major NY indices turned down.  A-D Line tends to be a leading indicator.  Until we see improvement in the A-D Line, it will pay to stay defensive.