10/07 Indices, page-178

Overnight in the U.S. - Mixed Results in Stocks. Energy and Base Metals down.

Dow Jones +0.33%. SP500 -0.1%. Nasdaq -0.18%. Mid Caps -0.94%. Small Caps -0.88%. Banks -2.35%.

The front line soldiers of the market, Mid Caps and Small Caps, were down heavily and both Indices show bearish engulfing candles. Banks show a very big bearish engulfing candle. That's not a good sign for the broad market.

Reporting season is kicking off in the U.S. JP Morgan reported better than expected profits - but that didn't feed into the broad Banks Index.

SP500.

SP500 remains in a bullish up-trend.

Storm Clouds are beginning to gather. RSI is at 70 which is overbought and the Index has now formed an upsloping bearish wedge. If it breaks the lower support line of the wedge expect more downside.

Commodities.

Commodities Index -0.67%. Energy -1.74%. Base Metals -0.9%. Agriculture +1.12%. Gold -0.22%.

Gold is finding resistance at the 50-Day MA. A break above that would be bullish.

Yesterday in Australia.

XJO was up strongly on Friday, +0.78%. That's now four days in a row of very good rises.

Yesterday also broke above the recent high on 4 July. If this is the start of a new up-trend, we need to see a higher low formed. That is a good prospect ast plenty of support lies nearby.