Finspiration Australia. U.S. stocks fall as Technology tumbles.

 Overnight.

Dow Jones -0.29%.  SP500 -0.53%.  Nasdaq -1.56%.  Small Caps -0.71%.  Banks -0.85%.

SP500.

SP500 was down moderately, it remains within its short-term consolidation zone.  Next move might be to the upside where strong resistance remains.  Wait.

Commodities.

Commodities Index +1.09%.  Energy -0.79%.  Base Metals +3.33%.  Gold +0.6%.

After 15 minutes of trading this morning, XJO down about -0.5%.

Expect this to be a selling day.

 

Finspiration Australia. ASX follows U.S. to the up side. 3/3/22.

 XJO up today +0.49%.

XJO has now been up five days in a row.  That's getting a little long in the tooth for a short-term rally.

The index is now approaching the resistance of the recent consolidation zone and the Ichimoku Cloud.

It is also hard up against the Supertrend (7,1.5). XJO tried today to rise above that level but failed.

With all that resistance overhead, the probabilities lie to the downside.

The ASX remains unbalanced.  Today, four sectors out of eleven were up.  The biggest movers were again Energy +2.6% and Materials +2.6%.  Such unbalanced markets can easily be tipped into negative territory.

Finspiration Australia. U.S. Stocks rally. 3/3/22.

 Overnight.

Dow Jones +1.79%.  SP500 +1.86%.  Nasdaq +1.62%.  Small Caps +2.73%.  Banks +3.61%.

SP500.

SP500 is in a short-term sideways consolidation.  Probably the next move will be to the upside, but that will take the index into heavy overhead resistance.

Commodities.

Commodities Index +3.26%.  Energy +5.28%.  Base Metals +2.65%.  Gold -1.04%.

Iron ore +0.4%.

The ASX rose strongly at the start of trade with the XJO up about +1% but is now settling back to be up +0.63%.  We should still have solid gains today. 

Finspiration Australia. XJO in a choppy session but up modestly. 2/3/22

XJO up today +0.28%.

 Although XJO finished up today, the candle is an "inside day", which means that today's intra-day high was below yesterday's intra-day high.

Plenty of overhead resistance remains, which means the path of least resistance is to the down-side.

Today's market was unbalanced.  Energy +4.88%.  Materials +3%.  They were the big winners today.  Only two other sectors were up.  Utilities (dragged up by Energy) +0.84%, and Information Technology +0.02% - basically flat.

Financials took a big hit, -1.44%.

The unbalance in the market was felt in breadth.

NewHighs-NewLows -18.  UpStocks-DownStocks -158.

Unless the market is supported by breadth, it is in danger of falling.

NH-NL Cum Chart:

While NH-NL Cum remains below its 10-Day MA, I'll remain bearish.

Finspiration Australia. Morning summary, 2/3/22.

 XJO once again defies a fall in the U.S. Market.  XJO was down heavily in the first half-hour but has since rebounded.  Now up +0.21%.  5-Day chart below.

But ... the market is very lopsided.  Energy up +3.62%.  Materials up +2.61%.  Then it tails off quickly.

Utilities +0.22%.  Health Care +0.06%.  Consumer Staples +0.07%.

Every other sector is down.  Real Estate, Financials, Consumer Discretionary all down more than -1%.  Communication Services down -0.99%.

The resource sectors are benefitting from the geopolical problems in Eastern Europe.  (That's a euphemism for WAR.)

Finspiration Australia. U.S. stocks fall overnight. 2/2/22.

 Overnight.

Dow Jones -1.76%.  SP500 -1.55%.  Nasdaq -1.59%.  Small Caps -1.9%.  Banks -5.72% (ouch).

SP500.

The three-day candle stick pattern (up,doji,down) suggests the short-term trend has now reversed to the downside.  There's just too much overhead resistance to think about going long this market.

Commodities.

Commodities Index +4.02%.  Energy +5.06%.  Base Metals +1.84%.  Gold +1.82%.

Commodities continue to benefit from fear over the geopolitical events in Eastern Europe.

Iron Ore +3.8%.

After twenty minutes of trading this morning, XJO is down -0.6%.

Finspiration Australia. XJO up strongly but suffers afternoon selling.

XJO finished up +0.7% today, but -0.8% off its high.

 XJO had a strong rise in the early part of the day but hit resistance of the 20-Day MA and Supertrend 7,1.5). That kept it below the recent consolidation zone - another set of resistances.

We have to see much more upside before we can consider bullish placements.

Growth Sector Information Technology (XIJ) benefitted today lower bond yields in overnight markets.  XIJ up +5.66%.

The Russian invasion of Ukraine remains an uncertain back-drop to Australian and international markets.

Currently, markets seem to be optimistic that the Ukraine situation won't derail economic and stock markets in the Western World.