XJO Weekend Charting and Chat - 28th July 2017, page-3

From Tuesday Evening: ” … the break will probably be a false break and trap a lot of players.”  And … this is what we got yesterday:



It’s not unusual for symmetrical triangles to fail.  The XJO remains within a wide sideways channel.  Until we get a decisive break out of that channel, one way or the other, it’s best to remain on the sidelines.  These formations are great for smart short-term traders.

In U.S.

After Thursday’s volatile session the American market settled down with mainly flat results.



DJ +0.15%, SP500 -0.13% Nasdaq -0.12%,  NYA -0.07%, Russell2000 -0.3%.   Stochastic RSI remains in bullish territory on four out of five indices.  Only R2K has fallen into bearish territory (below the mid-line).
Financials flat +0.00%.

SP500:



SPX down a little -0.13% but showed some intra-day buying.  The chart is into no-man’s land.  All indicators are on short term sell signals. The potential for a pullback has increased.

Commodities:

DBC +0.54%.  Energy +1%   Industrial Metals -0.24%.  Copper Producers ETF was -0.08%.  Gold +0.75%.
Rio up in NY+1.61%.  It is knocking on a major horizontal resistance level.  MFI is showing a clear negative divergence so we may see a pull-back.  BHP in NY +1.37%

BHP in NY +0.83%.  Comments on Rio can be added for BHP.

After Friday’s big fall on the XJO we can expect, at worst, only a little downside on Monday.  Monday is also the last day of the month which has a tendency to bring money into the buy side.

RB.