Dow flat, Nasdaq up. Europe mixed. Commodities down.
Dow Jones +0.07%. SP500 +0.58%. Nasdaq +1.05%. Small Caps -0.53%. Banks -1.66%.
The bullish engulfing candle on the Nasdaq suggests that the bear pull-back in the Nasdaq has run its course. Small Caps show a long lower wick which is also a positive indication that the pull-back in Small Caps is over. That's arrived at the 50-Day Ma - another positive.
Nasdaq 100 Chart:
Last night's action is bullish:
- Bullish engulfing candle, coming at the low end of a down trend.
- Rebound last night comes at the Point of Control on Volume Profile.
- Positive divergence on the Stochastic.
- Rising Money Flow Index.
I would have liked to have seen a better volume on the NDX but it was still relatively strong.
This isn't out of the woods yet - plenty of overhead resistance which might slow things down, but looks promising.
Commodities.
Commodities Index -0.49%. Energy -0.57%. Base Metals -0.94%. Agriculture -0.75%. Gold -0.3%.
Base Metals and Gold have faced onslaughts from a stronger U.S. Dollar. Those commodities tend to rise or fall inversely to the U.S.$.
U.S.$ has had a great run up since mid-July coming off the Point of Control on the Volume Profile. Money Flow Index is pulling back, and U.S.$ is facing resistance of the 200-Day MA and the Kumo Cloud. So there is a good chance of a pull-back here in the $ and a chance of a rebound inBase Metals and Gold.
Gold.
After a long down trend from mid-July, Gold is down to support of the 200-Day MA and Horizontal Support. Bottom feeders will be looking to buy here.
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