23/10 Indices, page-214

Yesterday, XJO up +0.21%, Dow Jones down -1.12%, Nasdaq up +0.38%, Energy up +1.4%, Gold up +1.16%, US Dollar flat.

Below is a weekly chart for XJO:

XJO is down -1.07% for the week.

It is at the Oblique Supporting Trend Line and close to the 200-Week Moving Average. That suggests we should see an upside move in the near future.

U.S. Indices.

U.S. Indices were mixed overnight with Dow down and Nasdaq up.

Dow Jones -1.12%. SP500 -0.48%. Nasdaq +0.38%. Small Caps -1.01%. Banks -2.34%.

RSIs for Dow and SPX are both below 30 - extremely oversold. They don't go much lower without a rebound. It probably all depends on geo-political events.

SP500

The 3-Day EMA of Volume continues to rise and is well above the 13-DEMA and the 20-DSMA.

That suggests we are close to a selling climax which should see a rebound.

Watch for the 3-Day EMA of Force Index to rise above the 20-DSMA and for the Dynamic Zone Stochastic fo rise above its lower band.

Commodities.

Commodities Index +1.34%. Energy +1.4%. Base Metals +1.38%. Agriculture +0.92%. Gold +1.16%.

Gold is now into the overbought zone with a RSI at 74.53. This may be suggesting that its state as a safe haven may be coming to an end.

Energy is sitting around its 50-Day MA, i.e., about mid-range of recent activity. That's a bit surprising given the current turmoil in the Middle East. A candle-volume chart, however, shows a somewhat different picture:

Energy had huge volumes Thursday and Friday, a week ago. That suggests that the current uptrend which began when Hamas invaded Israel in early October may be coming to an end. Those huge volume occurred at a significant resistance level. Energy has pulled back a little since then on lower volume, but Wednesday was a very volatile day.

MAs on the Force Index (three of them) are all sitting mid-range. This could go either way, but given the big volumes a week ago, it wouldn't take much to nudge DBE lower. That would be a plus for the American market.