Finspiration Australia. Chart Analysis for Australian and European Stock Markets

 11/6/22.  In Australia yesterday.

Yesterday, XJO fell -1.25%, or -87.7 points.  For the week, XJO was down -4.24%.  That's the worst weekly performance since April, 2020,  just after the bear market of March, 2020.

A 52-week low was set for the XJO at the end of January, 2022.  The close on that day was 6838.3.  XJO finished yesterday at 6932.  That's 93.7 points away.  That's feasible given the magnitude of falls this week.  That 52-week low could be a turning point. 

Stochastic is in its oversold level, RSI14 is at 35.95 which is oversold.  Another big fall coming on Monday could take RSI14 into vey oversold territory which might be a catalyst for an upside move.  Of course, very oversold can become more very oversold back in March 2020.

Australian Banks are showing some promise of a rebound.  Below is a chart for ANZ:

CCI and Money Flow Index both show striking positive divergences from the ANZ chart.  Those two indicators are often good leading indicators for a trend reversal.

Yesterday's candle is a huge "tombstone" candle.  The upper wick is especially long.  Tombstones are often seen at the end of a down-trend. 

RSI14 is extremely oversold at 21.43.  Rarely do we see a reading below 25 without a rebound.

Stochastic is in its oversold zone.  A move up would indicate a short-term buy signal.  Any move up could precipitate a short covering rally.

Overnight.

Dow Jones -2.73%.  SP500 +2.91%.  Nasdaq -3.52%.  Small Daps -2.49%.  Banks -4.34%.

SP500.

SP500 gapped down at the opening and just kept going.

Money Flow Index shows an extreme positive divergence from price.  So a bottom may be in place soon.

Commodities.

Commodities Index -0.98%.  Energy -0.92%.  Base Metals -1.79%.  Gold +1.34%.

Gold gapped down at the opening, but then reversed to the upside under heavy buying.    That could signal the end of the bearish market in Gold.

Gold.

The bullish engulfing candle last night in Gold took the Gold chart above the 200-Day MA, which often provides a "go" signal for gold bugs.  GLD is now at resistance of the 50-Day MA, but the current momentum seems likely to overcome that resistance.

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

 Overnight.

Dow Jones -1.94%.  SP500 -2.38%.  Nasdaq -2.75%.  Small Caps -1.92%.  Banks -3.16%.

SP500.

SP500 has broken down from its eight-day consolidation.  Stochastic has crossed below its 80-line.  That suggests we'll see more downside.

Commodities.

Commodities Index +0.16%.  Energy +0.33%.  Base Metals -2.04%.  Agriculture 0.00%.  Gold -0.32%.

Iron Ore -1.4%.  Thermal Coal +0.2%.

Overnight Oz Futures -0.8%.  It seems we'll have another grim day on the ASX.

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

 9/6/22.  XJO fell heavily again today.

XJO fell today -1.42%.  Financials (XXJ -2.07%) again smashed.

XXJ has now lost all of the big rally from early March to late April.  I'll be looking for a floor under XXJ about these levels.

Best performing sector today was Energy +0.56%.  It was the only sector with a positive result.

Breadth remains poor.

NewHighs-NewLows Line continues to fall steeply.  The Advances-Declines Line confirms the bearish outlook.

I think it is best to stay defensive until we see definite improvement in these instruments.

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

 9/6/22.  Overnight.  

Dow Jones -0.81%.  SP500 -1.09%.  Nasdaq -0.73%.  Small Caps -1.69%.  Banks -1.72%.

SP500.

SP500 remains in its sideways consolidation, now into its eighth day.  No way of knowing which way this will break, but the most likely direction is up.  Wait.

Commodities.

Commodities Index +0.89%.  Energy +1.27%.  Base Metals +0.39%.  Agriculture +0.32%.  Gold -0.09%.

The up-trend in Energy is getting a bit long in the tooth.  A negative divergence is beginning to show up on the CCI, so this up-trend is probably entering its final stages.

Iron Ore +0.1%.  Thermal Coal -0.4%.

Overnight Oz Futures -0.7%.  That seems like we'll see a resumption of the down-trend from Tuesday.

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

 8/6/22.  XJO was up modestly today +0.36%, with intra-day selling taking off the top of a stronger start.  Banks were smashed again today.

                                                                 

           

Plenty of pluses and minuses today.  Energy did well, up +4.2%, Financials down -2.9%.

Amongst the banks, Westpac was the worst, down -6.1%.  ANZ was relative best, -2.3%.  NAB -4%.  CBA -4.4%.  In the second-tier banks, Bendigo was down more than -7% and Bank of Queensland -4.34%.

Yesterday, MVB (ETF for Banks) was down -2.29%.  Today, MVB continued on the downside -3.49%.

The interest rate rise by the Reserve Bank has changed the mood in the market.  

Despite today's rise, Advances-Declines was negative, so breadth was poor.

Stay defensive.

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

 Overnight.

Dow Jones +0.8%.  SP500 +0.95%.  Nasdaq +0.94%.  Small Caps +1.1%.  Banks +0.93%.

SP500.

SP500 remains in its short-term up-trend channel, but consolidating for the seventh trading day.  

Longer term, the index remains bearish as it is below the Ichimoku Cloud.  Wait.

Commodities.

Commodities Index +0.67%.  Energy +1.25%.  Base Metals -0.65%.  Agriculture -0.23%.  Gold +0.65%.

Iron Ore +0.4%.  Thermal Coal -4.4%.

Overnight Oz Futures +0.7%.

The Australian market usually bounces after a strong day down.  Yesterday XJO was down -1.53%.  We'll recover some of that day, but any rise should be a chance for traders to sell out of positions.

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

7/6/22.  XJO down heavily today after Ozzie Reserve Bank hiked rates by more than expected, up 0.5%.

XJO down -1.53%.  All sectors were down.  The worst affected were the interest rate sensitive sectors Information Technology and Real Estate, both down -3%.

Advances-Declines Line remains bearish.

This remains bearish.  Stay defensive until we see definite improve in this instrument.