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

23/7/22.  Yesterday in Australia.

XJO chart shows a doji candlestick which indicates indecision.  The index finished flat -0.04%.  That comes at a major horizontal resistance level, so the next move may be to the downside.

The market is in a short-term up-trend but a long-term down-trend.  So we can count the current rally as a counter-trend rally.

Stochastic is overbought.  It can remain overbought for lengthy periods of time, but in a bear market the period of time is usually brief.  Watch for a break below 80 for an end to this rally.

Overnight in America.

Dow Jones -0.43%.  SP500 -0.93%.  Nasdaq -1.87%.  Small Caps -0.94%.  Banks -1.52%.

Earnings season produced some big falls yesterday, particularly among social media stocks.  META (Facebook) was down -7%.  Pinterest -13%, SNAP -39% and Alphabet -5%.

Eight out of eleven sectors were down.  The only positive sectors were Consumer Staples +0.66%, Utilities +1.37% and Real Estate +0.76%.  Real Estate got a boost from lower bond yields.  They usually also provide a boost to Technology, but that was weighed down by poor earnings.

SP500.

SP500 is now into the Kumo Cloud - that's a "no trade" zone, so we might see a more turbulent market here.  A break back below the Cloud would be a bearish event.

The Cloud is quite wide here, which means resistance is strong.  The most likely movement, medium term, is back to the downside.  But the market will remain captive to earnings reports.

Commodities.

Mixed results in Commodities.  Commodities Index -1.19%.  Energy -0.81%.  Base Metals -0.6%.  Agriculture -1.53%.  Gold +0.25%.

The lower bond yields in America and good metals prices might help the XJO to some extent on Monday, but I'm not expecting a positive day.

 

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

 22/7/22.  U.S. equities rise for third day.

Dow Jones +0.51%.  SP500 +0.99%.  Nasdaq +1.36%.  Small Caps +0.28%.  Banks +0.63%.

SP500.

The short-term trend remains up.  The chart has moved into the Kumo Cloud, which usually means it will go to the upper side of the Cloud before hitting resistance, that's about 4140, or around 3%.

Commodities.

Commodities Index -1.68%.  Energy stepped down -2.21%.  Base Metals +0.22%.  Gold +1.41%.

Iron ore -0.7%.  Thermal Coal -1.3%.

Those metal and energy prices could put a cap on ASX resource stocks today.

ASX set to open flat.

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

 21/7/22.  XJO up moderately today.

XJO up today +0.52%.  That built on yesterday's big gains.

XJO was in a narrow range today until the afternoon session when it had a lift to the upside, giving the day's trading some respectability.

Breadth today was good, Advances 885, Declines 458.

The A-D Line remains bullish.

The NH-NL still hasn't turned bullish.

Long term investors should remain cautious.

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

21/7/22.  American equities rise after choppy trading.

 Dow Jones +0.15%.  SP500 +0.59%.  Nasdaq +1.59%.  Small Caps +1.42%.  Banks +0.04%.

Cyclicals were strong while defensives weakened.   

2Yr/10Yr Bond Yields remain inverted suggesting a recession is coming.

SP500.

SP500 is now above its 50-Day MA and in a short-term up-trend.

It is now faced with the resistance of the Kumo Cloud.

Until we see definite signs of reversal, we'll stay with the trend.

Commodities.

Commodities Index -0.08%.  Energy flat 0.00%.  Base Metals +0.88%.  Agriculture flat 0.00%.  Gold -0.94%.

Iron Ore +0.9%.  Thermal Coal +2.2%.

Overnight Oz Futures are down -0.4% suggesting the ASX will open lower.

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

 20/6/22.  Oz market up strongly today.

XJO was up today +1.65%.  It broke out above its recent sideways consolidation.  That's a positive.

Volume recently has been very low.  Today saw a rise in volume, albeit off a very low base.  But the rise in volume is another positive.

NewLows/NewHighs were on a par today 7/7.  A break higher for NH-NL could be in the offing.

Advances-Declines continues to be bullish.

Today's action was bullish.  In the very short-term it could be too bullish.  Advances-Declines hit a new high for this year - that's a contrarian sign for a short-term pull-back.

Don't let a short-term pull-back deter you.  The market is performing very well.

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

 20/7/22.  U.S. Stocks up strongly.

Dow Jones +2.43%.  SP500 +2.76%.  Nasdaq +3.11%.  Small Caps +3.5%.  Banks +2.83%.

SP500.

SP500 has broken out from its sideways consolidation.  That's a plus.

It's not out of the woods yet.  SPX faces resistance of the 50-DMA and then the KUMO Cloud.d

Let's take it one step at a time.  For now, SPX is heading up.

Commodities.

Commodities were mixed.

Commodities Index +0.39%.  Energy +1.4%.  Base Metals -0.93%.  Agriculture -0.6%.  Gold +0.24%.

After 15 minutes of trading, XJO is up strongly.  XJO +1.2%.

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

 19/7/22.  XJO down moderately today.

XJO was down -0.56% today, but remains in its sideways consolidation pattern.  This can go either way.

Energy +2.4%, and its partner in crime Utilities +1% were the only sectors up today.

Breadth, despite the fall in the broad market, was neutral.  648 stocks rose, 657 fell.  That's a slight bias to the downside, but not much in it.

Advance-Decline Cumulative remains bullish with the 10-DMA above the 20-DMA.

NH-NL remains below its 10-Day MA.

Until we see NH-NL rise above the 10-Day MA, I'd remain cautious.