13/09 Week, page-498

Sat. a.m. 18/9/21. Have the BTDers been stymied?

Yesterday in Australia:

Friday saw the XJO fall heavily down from the 34-Day EMA. XJO -0.76%.

Failure at the 34-Day EMA suggests more downside. Sentiment is bearish.

Overnight:
Dow Jones -0.48%. SP500 -0.91%. Nasdaq -0.91%. Small Caps +0.14%. Banks -0.32%.

SP500:

For many iterations now, when the SP500 fell down to the 34-Day EMA, Buy-the-Dippers have stepped up and bought the market. The dip has been followed by at least two strong days to the upside.

When something in the market becomes obvious - it usually stops working.

That appears to be the case here. The dip down to the 34-Day EMA hasn't resulted in two strong days to the upside. On Friday night, SP500 fell back below the 34-Day EMA denying the BTDers a quick profit.

Now, Friday in the U.S. was Quadruple Witching (associated with the expiry of derivatives). That can often result in "funny business" as Market Makers weave their magic (to their own advantage).

So the bears need to see follow-through selling on Monday.

At this stage, market action looks like consolidation at the lows - which is often followed by further downside.

Commodities:

Commodities were subject to more downward pressure as the Buying Climax from Wednesday in Energy continues to force commodities to the downside.

Commodities Index -0.81%. Energy -0.92%. Base Metals -0.42%. Gold -0.16%.

Expect further falls in the Australian market on Monday.