21/10/23. Saturday Finspiration Report.

 Yesterday, ASX fell heavily again.

XJO down -1.16% yesterday.  It is now back down to the key horizontal support level of 6900.  If that fails, the next major horizontal support level is 6440. That would entail a further drop of about -6.5%.  From late July till now, XJO is down about -7.5%.

Between now the next major horizontal support level is the 200-Week MA at 6770, that could also provide a significant support level.  

Below is a weekly chart showing the next support levels.

Will the Index continue falling?  Possible.  

On the positive side, daily chart indicators are beginning to show upside potential.  Daily RSI is at 35.9 which is oversold (but not very oversold).  Indicators in the lower panels, show potential for positive divergences - but we have to wait and see how those play out.

Overnight.

U.S. Stock indices were weak.  Oil down and gold showed intra-day selling.

SP500 is down to horizontal support and close to its 200-Day MA.  That's dual support which may hold.

Like the XJO, SP500 is oversold with an RSI at 35.4 - almost line ball with the XJO RSI at 35.9.  So SP500 is not very oversold.

A big potential positive divergence exists on the MACD which could suggest a move to the upside.

Volume is rising but not enough to suggest yet that we are seeing a wash-out.

Force Index is falling to a low level - but, again, not enough to suggest a wash-out.

Indications from the chart is that a near-term double bottom low could be forming - but we need to see more information to fell sure about that. 

Commodities.

Commodities Index -0.75%.  Energy -0.65%.  Base Metals -0.28%.  Agriculture -0.23%.  Gold +0.27%.

Commodities may provide a better understanding of what might happen to stocks.  Commodities are traded by people - professional traders who often predict the future course of events than stocks.

Volumes for Energy have risen sharply in the past two days which suggest a looming down-turn.  Last night's candle on Gold is a big "shooting-star" coming at the top of the up-trend on high volume suggests the end of the spike in Gold.

Gold.

 Gold is a "safe-haven" in times of geo-political unrest as we've seen in the current turmoil in the Middle East.  Since 6 October, the time of Hamas incursions into Israel, Gold has risen nearly +9%.  Friday's intra-day selling may point to the end of the rise.  

Negative divergence on the 3-Day EMA of the Force Index suggests the next movement will be to the downside.   That would indicate optimism that the current geo-political turmoil is coming to an end.

Good luck.