31/10 Indices, page-193

5/11/22. Overnight in America, stocks rise but down for the week.

Dow Jones +1.26%. SP500 +1.36%. Nasdaq +1.29%. Small Caps +1.54%. Banks +2.55%,

SP500.

Trading was choppy after the Jobs Report, but an afternoon rally took the SP500 well into positive territory. (Stock market adage: Dumb money buys in the morning, smart money buys in the afternoon.

On Thursday, SP500 hit 3700 (round numbers) and has bounced on Friday. The Thur/Fri action saw a successful test of the old restraining oblique trend line from early October. That suggests we will see more upside.

The Supertrend Line (7/3) remains bullish.

Long term, SPX remains well below the 200-Day EMA - that's the long curved line at the top of the chart.

While SPX remains below the 200-Day EMA, I'll continue to think that any rally is a bear market rally.

Commodities - Whooska.

OMG - What happened? Commodities Index +3.38%. Energy +3.65%. Base Metals +6.31%. Agriculture +1.26%. Gold +3.07%.

The best guess is that China will give up on its Covid Zero policy - re-opening the Chinese Economy. That's good news for a resources based economy like Australia which has China as its major market.

In Australia yesterday.

On Friday, XJO successfully tested major horizontal support, after failing at the 200-Day MA on Thursday. Those astounding Commodity prices on Friday night, suggest at least another test of the 200-Day MA and possibly a finish above that important support/resistance level. Currently, XJO is about 1.5% below the 200-Day MA. A move of more than 1.5% on Monday certainly looks feasible given those Commodity results.

Bitcoin

On Friday, Bitcoin was up >4% and continues its bullish action. That's a (higher high, higher low) "go long" event.

Here's the Ichimoku Chart for BTCUSD:

BTCUSD remains within the Kumo Cloud. More cautious investors might wait until the chart rises above th Kumo Cloud.