Finspiration Australia. Chart Analysis for Australian and International Stock Markets.

Overnight.

Dow Jones -0.54%.  SP500 -0.75%.   Nasdaq -0.72%.  Small Caps -0.33%.  Banks -1.97%.

SP500.

SP500 is consolidating at the top of a short-term up-trend.

The Index overall remains bearish.  Until we can see a decisive move above the Ichimoku Cloud.  Stay defensive.

Commodities.

Commodities Index +0.49%.  Energy +1.73%.  Base Metals -1.39%.  Agriculture -0.09%.  Gold +0.64%.

Iron Ore +0.2%.

The ASX has started well down at the opening, after 30 minutes it is down -1.1%.

 

Finspiration Australia. Chart Analysis of the Australian and International Stock Markets.

 1/6/22.  XJO up modestly after a choppy trading day.  Range was narrow.

The past three days has seen the XJO oscillator around the 200-Day MA.  That's considered an important marker between a bull and bear market.   

The XJO is indecisive.  It finished just below the 200 DMA.

Stand aside until we see a definitive break above the 200-Day MA.

Momentum is to the upside, so the odds are favourable for a decisive break above the 200-DMA.

Finspiration Australia. Chart Analysis of Australian and International Stock Markets

 1/6/22.  Overnight.

Major U.S. indices finish lower.  End of month book squaring resulted in high volumes.

Dow Jones -0.67%.  SP500 -0.63%.  Nasdaq -0.41%.  Small Caps -1.07%.  Banks +0.22%.

Positive economic news out of the U.S. resulted in rises in U.S. Treasuries - that was a negative for stocks.  Hawkish comments by Fed Governor Waller on future interest rate rises didn't help matters.  

SP500.    

SP500 is in a short-term up-trend, but longer term it remains bearish.  Until we see a decisive move above the cloud, this must still be considered a counter-trend rally.

Commodities.

Commodities Index -0.69%.  Energy +0.18%.  Base Metals -0.79%.  Agriculture -1.92%.  Gold -0.99%.

Overnight Oz Futures finished down -0.36%.  The ASX can expect a weak opening this morning.

Finspiration Australia. Chart Analysis of Australian and International Stock Markets.

31/5/22.  Last day of the month today and XJO fell -1.03% after being up yesterday +1.45%.  For the month of May, XJO was dow n -3.01%.  Seasonally, June tends to be flat.

The short-term trend remains up, but that looks increasingly in danger with resistance from the joint 50/200 DMAs just over head.

Tonight, trading returns to the U.S. after being closed for Memorial Day holiday.

Tomorrow, Australia sees release of GDP figures.  Those figures could be market changing.  A poor number could be good for the market, a good number could be bad for the market (because of effects on interest rates, one way or the other.)

Finspiration Australia. Chart analysis of Australian and International Stock Markets.

 30/5/22.  XJO up strongly today.

XJO up +1.45%.

Today's strong result pushed the XJO our of its short-term consolidation, and up to the next level of resistance.

Given that America is closed for a holiday tonight, we can't expect much tomorrow.  Consolidation is the best bet.

Breadth today was good, with the ASX A-D Line rising above the 10-DMA for the first time since mid-April while still consolidating.

Expect consolidation in our market tomorrow while the U.S. is no holidays.

Finspiration Australia. Chart Analysis of Australian and International Stock Markets.

    Weekly Wrap - Week ending 27 May, 2022.

XJO Monthly Chart.

The monthly chart is range bound 6970-7630.  

The chart is currently above the 8-month EMA but it is essentially sideways as indicated by the two flat Supertrend lines, one above and one below the monthly candles.  

The MACD Histogram also indicates a flat or sideways market, with the Histograms almost non-existent for the past three months - hugging the zero line.

Weekly Chart.

XJO was positive this week, +0.52%, after being up +1% the previous week

The chart is range bound, in concert with the monthly chart.  

Medium term, the chart the chart remains bearish..  Hull MA13 is blue (bearish); two Supertrend lines are blue (bearish) and the chart is below the 8-Week EMA is heading down (bearish).  RSI and CCI are below their mid-lines (bearish) and Stochastic has fallen below its signal line (bearish).

The chart is, however, rising from the lower edge of the range

The chart shows a trading range in round figures from 7630 to 6930.  This week XJO finished at 7182.  

Daily Chart.

Looking at this chart, it doesn't take a genius to see that the past week or so has been in a sideways trend.

All three charts, monthly, weekly and daily are in sync, sideways within sideways.  Let's see of the daily chart can break out of its short-term range.

The confluence of the 50/200 DMAs suggests that any rise is likely to be short-lived.

Sector Changes - past week.

This chart shows the performance of each sector (plus Gold Miners, XJO, BEAR and IAF) over the past week.  

Despite the positive rise this past week, the Market is unbalanced, with four sectors up, one flat and six down.  Resources (Materials XMJ +1.78. Energy XEJ +2.14%) and Financials (XXJ +1.31%) were largely responsible for the positive ASX return this week.  XMJ and XXJ are, of course, the two biggest sectors in the market, and have an outsized impact on where the market heads.   

Information Technology (XIJ -3.43%) and Consumer Staples (XSJ -2.2%) were the worst performing sectors.  They represent two edges of the equity spectrum (from growth to defensive) so the market was a bit indecisive from that point of view.  Commodity based sectors (Materials and Energy) remain the places to be.

New Highs - New Lows Cumulative.

This is one of the important breadth indicators.  Unless breadth is solidly positive, the market is always under threat.

NH-NL Cumulative continues to fall and is now well under its 10-Day Moving Average, that's a big red danger sign for long-term investors.  

ASX Advance-Decline Line.

This is another important indicator of breadth.

Like NH-NL Cum, ASX Advance-Decline Line is also bearish, but not quite as bleak as NH-NL Cum.

It is, however,  below its 10-DMA and its 20-DMA.  

% of Stocks above key moving averages.

1.  % of stocks above 10-Day Moving Average: Last Week 74%, This Week 52%.

2.  % of stocks above 50-Day Moving Average, Last Week 38%, This Week 30%.

3.  % of stocks above 200-Day Moving Average, Last Week 40%, This Week 37%

This is another indicator of weak breadth.  Despite the rise in the XJO the %age of stocks above key Moving Averages fell this week.

Weak breadth is often a leading indicator for falls in the market.

Conclusion.

1.  Monthly, Weekly and Daily charts in sync - non-trending.  (Traders will play the ranges)

2..  Breadth is poor, so the most likely direction is down.  If breadth continues to be poor, we can expect a break down from the ranges, and a continuation of the bear market.  Perhaps not this week, but its not far off.

3.  50/200 DMAs are almost connected - that's stiff resistance.  Any rise is likely to be short-term when the XJO hits dual resistance of those two major MAs.

Finspiration Australia. Chart Analysis of Australian and International stock markets.

 28/5/22 Yesterday in Australia.

XJO remains in a bearish PRT band and sitting at horizontal resistance at 7813.  Given events overnight, XJO is highly likely to breach resistance and could be above the Medium Term Line of the PRT Bands.

Overnight.

Dow Jones +1.76%.  SP500 +2.47%.  Nasdaq +3.33%.  Small Caps +2.31%.  Banks +1.27%.

SP500.

SP500 has completed a double bottom and is above its Mid Line.

It remains in a bearish PRT Band, with a major resistance level just over-head at 4170.  That might result in some consolidation, but further ahead is looking likely, with the next target at 4306.  

Commodities.

Apart from Gold (flat +0.05%),  Commodities had good rises overnight in sync with equities.

Commodities Index +1.19%.  Energy +1.5%.  Base Metals +1.62%.  Agriculture +0.63%.

NY Advances-Declines Line.

NY A-D Line is in a clear short-term up-trend above both the 10DMA and 20DMA.   10DMA x-over above the 20DMA is imminent.  That's a bullish indicator.