ASX Morning call 1st August, page-5

In Australia yesterday:



Australia finished flat +0.03%. The trends remain up. Stay with the trends.



Dow Jones +0.43%. SP500 +0.49%. Nasdaq +0.55%. Russell 2000 +1.07%.

R2k shows a bullish engulfing candle – that’s a big positive, but we have to see if it flows through to the other major indices which remain ambivalent.

SP500:



SP500 has paused at the 20-Day EMA and the mid-line of the medium-term trend channel.

Three out of four indicators have turned up.

Expect more consolidation or further downside.

If the R2k isn’t lying, then this market is in part of a longer upside rally. A break below major support would tell us that all bets are off.

Commodities:


Base Metals, +1.45%, has broken upwards from its consolidation and above the 20-Day EMA. Expect more upside.

Energy, -1.49%, gapped down from the top of its recent rally – on high volume. Expect more downside.

Gold, +0.29%, shows a bullish engulfing candle at its lows – expect more upside.

All of the above suggests a stronger day for the XJO today – stay with the trend (as said above).