Friday: XJO up, Europe down, U.S. down, Energy up.
XJO
XJO is in a short-term down trend consolidating at its lows after forming a short-term bearish top.
It finished a little above a horizontal support level.
Using the Ichimoku system, XJO has fallen below its Conversion Line but remains above its Base Line.
Longer term, XJO remains bullish as it sits well above the Kumo Cloud.
The possibility of a Head/n/Shoulders top remains. A break below support would complete a H/n/S Top.
Continue to monitor.
SP500
Last night's candle is a bearish engulfing candle which suggests mor down-side.
The chart is at the lower edge of the Standard Error Channel and marginally below the Base Line of the Ichimoku system. That suggests we may see a rubber-band reversal to the upside.
Longer term, the chart is well above its Kumo Cloud (bullish) and DMI (200) remains bullish.
Look for a reversal to the upside in the near future.
Energy.
Energy has had a great run since it broke above the Kumo Cloud in early July.
That run may be coming to an end with a negative divergence on the MACD. RSI is well overbought (above 70).
Volume studies suggest that "Smart Money" may be pulling out of this market. A pull-back to the 200-Day MA seems likely. That would still keep it in bullish territory above the Kumo Cloud.
A chance to get back into this bullish market on the pull-back?
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