Finspiration Australia. Friday - XJO stocks down, U.S. stocks down. U.S. Bonds up.

 Yesterday in Australia.

XJO down -0.98%.

The past two days represent an emphatic rejection of the 50-Day and 200-Day Moving Averages.  These two near neighbours on the chart are major markers of bearish trends.  The 50-Day below the 200-Day is called a "death cross".  It is not always a harbinger of a bear market as it is a lagging indicator, but, if the Index gets rejected after a test of that "death cross", it becomes a much stronger indicator.  Expect more downside. 

Last night in America.

Dow Jones -1.43%.  SP500 -1.9%.  Nasdaq -2.79%.  Small Caps -0.22%.  Banks -1.38%.

SP500.

SP500 is back below the 200-Day MA.  The Supertrend (1.4/7) has switched from yellow to blue, indicating further downside.  The index seems to be headed back down to major support around 4300.  SP500 finished last night at 4419.

Commodities.

Commodities Index +1.49%.  Energy +2.09%.  Base Metals -1.53%.  Gold +1.91%.

Flight to Safety.  Gold and Bonds.

Fear is beginning to grip the American markets.  With big falls in stock indices, we're starting to see money flow into safe havens, like Gold +1.91% (see above) and also Bonds.  20-Year Treasuries (TLT) were up +1.48%, the biggest move in TLT since last November, 2021.  We haven't seen moves like this during the recent fall in the SP500 earlier this year.

When fear grips the market, it becomes irrational.  Anything can happen.  It can also disappear quickly depending on geo-political and economic events.

At this stage, however, we can expect more downside in stocks, until the fear factors are assuaged.

Finspiration Australia. Increasing inflation data drops stocks in the U.S.

Overnight.

 Dow Jones -1.47%.  SP500 -1.81%.  Nasdaq -2.1%.  Small Caps -1.39%.  Banks -0.32%.

SP500.

SP500 drops back into its recent short-term consolidation area. Failed break-outs such as these usually continue to the downside.  

The chart remains locked between the 50-Day and 200-Day MA so the SP500 may be OK.

We now have a new trading range, 4450-4590.  4500 is the 200-Day MA.  

Commodities.

Commodities Index -0.52%.  Energy -0.41%.  Base Metals -0.66%.  Gold -0.38%.

Iron Ore +4,8%.

After 15 minutes of trading, XJO is down -0.5%.  The big iron ore miners are saving the market from a serious savaging.

Finspiration Australia. XJO up today but showing first signs of weakness.

 XJO finished up today, +0.28%.

XJO was confronted today by the 50-Day and 200-Day Moving Averages and failed to finish above either of those.  It marginally broke above the 200-Day MA (the higher of the two key MAs) then retreated back below the 50-Day MA.

Coming at the top of the trend, that's a sign of weakness.  We need to see downside tomorrow to confirm.

Seven out of eleven sectors were negative today and one finished flat.  So we have an unbalanced market.  The overall positive result was largely due to Financials (XXJ +0.9%) which is the largest sector in the market.  XXJ had another big bank reporting today, NAB up +4.5%.  But the reporting by the banks is now done.  They've been a big part of the current rally.  Without any more big results coming in from the banks - that's another reason for thinking the market might pause or pull back here.

Currently in Europe, both the DAX and FTSE are up a little, but that's a tenuous positive lead.

Let's see how tomorrow goes.

Finspiration Australia. U.S. T-Note yields fall boosting stock returns

Overnight. 

Dow Jones +0.86%.  SP500 +1.45%.  Nasdaq +2.08%.  Small Caps +1.12%.  Banks +0.09%.

SP500.

SP500 has broken upwards from its short-term consolidation.  It remains locked between the 50-Day MA and the 200-Day MA.  The chart also remains below the Ichimoku Cloud.  This remains, in my view, a counter-trend rally.  Wait.

Commodities.

 Commodities Index +1.01%.  Energy +0.56%.  Base Metals +2.76%.  Gold +0.34%.

Iron ore down -2.1%.

After 10 minutes of trading, the XJO is up +0.6%.

NAB reported this morning and is going gang-busters, up +3.49%, that will further boost the price of the other banks.

Finspiration Australia. Oz stocks finish strongly on the back of corporate reports.

 XJO up today +1.14%.  The morning session was volatile with the market rising stronger then falling back almost to par at 11.40 a.m.  From then on it was all upside.

XJO continues its strong counter-trend rally.  Now facing crucial resistance with 50-Day and 200-Day Moving Averages just overhead.

If we keep getting good corporate reports, XJO could continue to the upside.

Today, Commonwealth Bank lead the band with a +5.58% move after announcing good results.

Tomorrow we get ASX, Mirvac, Cimic, Downer EDI, AMP and AGL.  None of those have the same weight as CBA, but all are in the ASX100.

Finspiration Australia. Good corporate earnings push up U.S. stocks

 Overnight:

Dow Jones +1.06%.  SP500 +0.84%.  Nasdaq +1.28%.  Small Caps +1.78%.  Banks +2.03%.

SP500.

 SP500 continues with its sideways consolidation.  Wait.

Commodities.

Commodities Index -0.87%.  Energy -1.51%.  Base Metals +0.13%.  Gold +0.31%.

Iron Ore +0.4%.

CBA reported this morning.  The market likes the report, CBA up +5%.

After 30 minutes of trading, XJO up +0.6%.  Sectors are mixed this morning with more negatives than positives, but the market is buoyed by Financials, up +1.84%.

Finspiration Australia. XJO finishes higher despite poor lead from U.S.

 XJO was up +1.07% today.  The index peaked at 12.00 then chopped sideways to the end of trading, finishes close to the high of the day.

XJO is now at a major test point.  It is sitting at the 20-Day MA and the Kijun-Sen.  Expect a pause here.

Overall pressures remain to the downside, despite the recent counter-trend rally.  50-Day MA is below the 200-Day MA and the Index is below the Ichimoku Cloud.

The Australian market is into reporting season, and a lot of results today supported the market.  Macquarie Group (MQG) up +3.9%.  Suncorp (SUN) up +5.5%.  SCP Property (SCP) up +3.21%.

The two biggest sectors in the market both did well today, XMJ up +2.2% and XXJ +1.4%.

Despite the above good results, NewHighs-NewLows was negative -4.  Australian VIX also went across the grain, rising +0.94% to 15.67.  

In Europe, Germany's DAX is up +0.6% and U.K. FTSE is up +0.6%.  Let's see where they end.