SP500
SP500 is between the 50-Day MA and the 20-Day MA. It is also above the 8-Day EMA. That suggests we will see a bit more consolidation before the market decides which way to go, up of down.
Commodities.
After an early plunge, XJO is now down only about -0.3%. This suggests the oz market will have minimal losses today.
XJO finished just on the positive side today after intra-day selling knocked the top off early gains.
Horizontal Resistance at 7090 and Kijun Sen proved just to hard for the XJO and we have a bearish shooting star candle today.
Despite the flat finish today, seven of 11 sectors were up, led by Financials (XXJ) +0.86%. Health (XHJ) was the weakest -4.52% after CSL fell -6.3% on heavy volume, and RMD fell -5.26%.
Chart for CSL:
CSL is now down about -24% since its peak in early June. That takes it into bear market territory.
Plenty of possible positive divergences exist on the chart indicators so we could see a reactionary upside bounce in the near future.
I talked about Bank of Queensland yesterday. Here's today's chart:
BOQ rebounded strongly today off important horizontal support. That suggests that the worst is over for BOQ - but we still need to see more upside to confirm.
Europe has started its trading session in positive ground with STOXX600 up +0.77%.
Dow Futures up +0.3%.
Those are positive signs for Oz tomorrow if they can hold overnight.
Overnight, U.S.stocks finished on the positive side after afternoon buying erased early losses. Energy down, Gold up.
SP500
SP500 has had a good run-up and is now above the 20-Day MA and Kijun Sen (dotted line). It is also well above the 8-Day EMA.
MACD Histogram is above its zero line and RSI14 is above its mid-line. That's a bullish indication.
On the negative side, SP500 is now opposite a High Volume Node. These tend to act like magnets to charts and often act as resistance levels.
We may see some consolidation or a pull-back here.
Commodities
After an hour of trading this morning, despite my pessimism over the past couple of days, ASX is up again today, about +0.3%.
I talked about Bank of Queensland last night. BOQ is up >2% this morning, so it is holding at horizontal support.
The big disappointment this morning amongst the large caps is Resmed (RMD) down -5%.
XJO up for fifth day in a row, +0.68%.
This has been a strong upside movement but the XJO is still not overbought. RSI14 is at 51.02, just past its midpoint so there could be more upside.
The chart is now at the next horizontal resistance level, so we might get some consolidation now after five strong upside days.
Information Technology (XIJ) was the best performer today, +1.7%. I take that as a good sign as IT is a key growth sector and the market now seems happy to bet on growth. Discretionary was next best at +1.23%. That's another important sector for a bull market.
Ten out of 11 sectors were positive today with Health flat at 0.00%.
Bank of Queensland reported today and the market was not happy. BOQ down -7.44% on heavy volume.
BOQ has been under pressure for a long time - you can see that by the down sloping 200-Day MA (that's the black line sloping down in the top half of the chart). BOQ is now back down to an important support zone. If it breaks down through that it might keep going for a while.
CSL held its AGM today and the market was non-plussed by that even. CSL finished flat.
The ASX had a very strong day today, XJO +1.01%.
XJO is now opposite a congestion zone where it consolidated for over a week. That might cause some poor consolidation now.
If it gets through that zone, the next significant resistance is the Kijun Sen of the Ichimoku Cloud system.
The chart shows four days so far in this surge to the upside, so that might be all for a couple of days.
All sectors were up today - so breadth was good.
Weakest today was Financials (XXJ) +0.63%.
Best was Utilities (XUJ) +4.17% followed by Information Technology (XIJ) +3.02%. Good to see one of the most important growth sectors responding well today.
Europe has followed Australia to the upside in early trading tonight. STOXX600 +1.1%. Dow Jones Futures are up a little, +0.16%.
After early losses, U.S. markets rebound to finish on the positive side. Due to the War in the Middle East, Gold and Oil finish higher.
SP500.
MACD Histogram has nudged above its zero line.
The short-term trend is up - stay with the trend until otherwise indicated.
Commodities.
After 30 minutes of trading this morning, XJO is up +0.76%.
Markets appear to be discounting the possibility of the HAMAS/Israeli War escalting into a wider conflict.
Good Luck,
Despite a promising Futures reading over the weekend of >0.8%, XJO only rose +0.23%. The disjunction is probably due to the fracas in the Middle East.
XJO Chart
Expect a pull-back or consolidation.
Mixed Results in New York. Energy up. NAB ex-dividend today. Dow Jones +0.16%. SP500 -0.08%. Nasdaq -0.11%. Small Caps -0.07%. Banks -0...
