26/8/23. Saturday Finspiration Report.

Yesterday in the ASX, the Ozzie market followed the Thursday night U.S. market to the downside.

Last night (Oz time) Fed Head, Powell, spoke at Jackson Hole Symposium for World Central Bankers.  American markets were choppy but finished on the plus side.  (It's debatable whether or not his speech had any effect of the markets.)

Yesterday in Australia:

 STW (ETF for the XJO) fell heavily on Friday, down -1%.  XJO was down -0.93%, more or less the same as the STW.

Thursday saw indicators kick up but not enough to provide evidence that the down trend is over.

The chart remains at the low end of the Value Zone for the Volume Profile, so there is some chance of a move higher.

The "First Three Days of the Month" theory suggests that traders should wait for a move out of the range of the first three days of the month before taking positions.  That theory worked relatively well for traders in August.  A break lower from the range occurred on 16 August and the STW (XJO) has been in a down trend since.  This is clearly a "theory" to be used by swing traders not investors.

Overnight in America:

 Dow Jones +0.73%.  SP500 +0.67%.  Nasdaq +0.94%.  Small Caps +0.15%.  Banks -0.4%.

SP500.

The August fall in the SP500 was well predicted by the negative divergence on the MACD Histogram.

SP500 has been in a downtrend from the beginning of August, and, so far, indicators are not showing a let-up in the fall.

SP500 remains below the Tenkan Sen of the Ichimoku system.  That's the short-term conversion line.

Tenkan Sen remains below the Kijun Sen - that's the base line of the the Ichimoku system.

I'd stay away from this until I get some positive indications that the down-trend has ended.