American market up strongly on Options Expiry Day. SP500 sets...

American market up strongly on Options Expiry Day. SP500 sets new all time high. Energy down. Gold up.

Dow Jones +1.05%. SP500 +1.23%. Nasdaq +1.11%. Small Caps +1.11%. Banks +2.51%.

The three major indices all followed through strongly from Thursday's bullish candles. 

SP500.

SP500 has. broken to the upside from its sideways consolidation zone. There's always a concern that a break-out is a false break-out, but the consolidation has been in place for more than a month. The longer a consolidation has been in place, the more certain we can be that a break-out is the "real deal". That's the case in the current situation.

(Note: Max Pain Theory failed to deliver in this January's Options Expiry.)

Commodities.

Commodities Index -0.18%. Energy -0.63%. Base Metals +0.58%. Agriculture +0.77%. Gold has bounced off its 50-Day MA, +0.3%.

Sydney Futures (Australian market) are up +0.35% last night suggesting the Ozzie market will start on the positive side on Monday.

XJO DAILY CHART

XJO formed a bullish engulfing candle on Friday. We've had one bullish engulfing candle during this pull-back - on 9 January.  Bullish engulfing candles are usually reliable, the 9 Jan. one did not follow through. Nor did it break above any of the three Supertrend line. In yesterday's case, The bullish engulfing has turned the Supertrend (10,1) from blue to yellow. For the short-term trader that should be a go-long signal. For the medium term, I like to see all three

Supertrends turn from blue to yellow. That's a possibility on Monday. Given the bullish action in the U.S. overnight, we can expect a solid move to the upside in Australia on Monday.

XJO remains above both its 50 and 200 Day MAs which had a "Golden Cross" on 10 January. This is a bullish signal for long term investors.

Good luck.