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

 26/7/22.  XJO up a little today.

XJO up today +0.26%.  It is edging towards the Kumo Cloud which represents resistance.

Short-term, XJO remains in an uptrend.  Longer-term the trend is down.  Usually, the long-term trend wins out.

The best performing sectors today were the resource sectors, XMJ up +1.6% and XEJ +2.8%.

As Australia is a Resource dependent economy, that's a plus for the market.

But our market still depends on the tides of the international market and the effects of interest rates set overseas.

We have to wait on the release of the Federal Reserve interest rate decision and the market's reaction to that.

At the moment, our market is causing in neutral, waiting to see how things go from here.

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

26/7/22.  Mixed results in the U.S.  Tech down, Industrials up.

 Dow Jones +0.28%.  SP500 +0.13%.  Nasdaq -0.43%.  Small Caps +0.67%.  Banks +1.31%.

Walmart reported after the market closed with a pessimistic outlook on the effects of inflation.  U.S. futures fell in response to Walmart's report.

SP500.

The chart is inside the Kumo Cloud, the no-trade zone.  Today's doji candlestick denotes indecision.

The SP500 seems to be waiting on the Federal Reserve's interest rate decision before making its next decisive move.

Commodities.

Commodities Index +1.81%.  Energy +2.07%.  Base Metals -0.22%.  Agriculture +1.35%.  Gold -0.27%.

Iron Ore +0.5%.  Thermal Coal +0.3%.

XJO should up on the plus side this morning.

Finspiration Australia.

25/7/22. ASX choppy and indecisive.

 XJO finished flat today, down just -0.02%.  The days action was choppy and very narrow - which usually leads to expansion.

Clearly, XJO is waiting on news from American earnings season and the Federal Reserve decision on Wednesday.

Tonight, Alphabet reports.

ASX New Highs and New Highs were 10/10 - exactly even.

Advance-Declines favoured Declines,  Advances: 587, Declines 744.

Materials kept the ASX afloat (more or less) up +1.1%. Financials finished flat 0.0%.

Seven out of eleven sectors were down today.  

The ASX is currently captive to the American earnings season and the Federal Reserve.  The Fed is fairly transparent and its decisions built into market movements.  The wild card is the earnings season.

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.