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

 28/7/22.  XJO up strongly today following the U.S.

XJO is in a short-term up trend.  The chart is now into the Kumo Cloud - the no-trade zone.

Given today's strong action, tomorrow will probably be a narrow range day.

Anything can happen from here.  

Markets remain captive to earnings season in the U.S.  The market can jerk around as results come out.  So far, they have been largely positive.

Advance-Declines remains bullish.

Advance/Declines was very strong today - so strong that it probably means a pull-back tomorrow.

The ratio Advance/Declines was +0.73 today.  That's the strongest we've seen this year.  That's a plus and a minus, medium term, it's a plus, but short term it probably means a pull-back.

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

28/7/22.  U.S. stocks finished higher after Fed. decision.

 Dow Jones 1.37%.  SP500 +2.62%.  Nasdaq +4.08%.  Small Caps +2.33%.  Banks +1.98%.

As expected, the Federal Reserve raised interest rates by +0.75%, but Fed. Head Powell said he didn't think the U.S. was in recession and implied but further rate rises might moderate.

The yield curve, however, remains inverted.  That's usually taken as a sign that a recession is a probability

SP500.

SP500 remains in a short-term up-trend.

CCI and MACD Histogram both show negative divergences from the Index Chart, which suggests SP500 is coming to the end of its rise in the near future.

SP500 is inside the Kumo Cloud, so the top of the cloud might provide resistance.

Commodities.

Commodities also responded well to the interest-rate increase.  Commodities Index +2.28%.  Energy +2.99%.  Base Metals +1.13%.  Agriculture +0.71%.  Gold +1.02%.

Iron Ore +0.1%.  Thermal Coal -0.6%.

Overnight Oz Futures are up 0.8%, so ASX market should have a strong start to trading today

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

27/7/22.  Overnight U.S. stocks fall.

 

Dow Jones -0.71%.  SP500 -1.15%.  Nasdaq -1.87%.  Small Caps -0.55%.  Banks -2.18%.

A slew of reports came out after the market closed including Alphabet, Microsoft, McDonald's, Coca-Cola, Chipotle.  U.S. Stock futures have rise after the bell, about +0.2%.

SP500

SP500 has fallen back to its 50-Day MA which may provide support.  

Federal Reserve gives its interest-rate decision tonight, which might provide market moving information.

Commodities. 

Commodities Index +0.2%.  Energy -0.28%.  Base Metals +1.14%.  Agriculture +1.23%.  Gold -0.12%.

Iron Ore +1.3%.  Thermal Coal +0.9%.

XJO started this morning to the downside, but has since jerked back up.  After 20 minutes, XJO +0.24% with Defensives leading the way.

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.