Big fight coming up between bears and bulls?Yes AZL lost 3 pips...

Big fight coming up between bears and bulls?

Yes AZL lost 3 pips to finish at 7.1c. Our volume was slightly below average, just over 9m shares traded. Still trading in zone 6.8 to 7.6 - probably will need a big push to get out from here - general/Li market or some news.

ASX Li stocks made a small gain. Of the 54 stocks that I track, average gain was 1%.

Overnight US Li stocks were generally weak after a big gain on previous night, but did not lose much, average loss of 1%


What next:

Yesterday US markets were flat as I was expecting. There was a massive gain previous day and it was difficult to do 2 in a row. A flat consolidating market was good under the circumstances. SP 500 finished nearly flat at 4076. ASX though was not in a good mood and lost around 0.75% today.

SP 500 has reached the critical level, trading above 200 day moving average. It was good to stay above that. From chart perspective, yesterday's trading was indecisive. It touched 4050 and 4100 and finished right in the middle at 4076. As I have mentioned in the last few days, next big number is 4230. Also a rise of 20% above the bottom signifies that it is no longer a bear market rally - something to deflate the bears if it does that.
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Lead indicators are looking very good, in fact the best of recent times. Dollar Index fell, Yields big fall and 10 year yield getting towards 3.5 and Volatility Index VIX below the psychological level of 20 - at 19.84. Two things can happen - either markets are primed for a big rise, or as many analysts feel - these are topping process and now we will go down.
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Economic numbers are coming good from stock perspective. PCE was below expectation - one number that Powell follows a lot - so very positive from that perspective. The drop of around 5% on 10 year yield also a reflection of that.

Analysts are still divided and I don't see any consensus. Effectively markets will dictate what analysts will say next.

So what will happen tonight? Nearly 80% of Fridays has been big nights in US markets in recent times - big gains or big falls. Market sitting at critical level where we can expect a big fight between bear and bulls. US Futures slightly in red. Asian markets largely red. Tonight very critical data around Unemployment Rate and Non-Farm Payroll - they will give big direction to markets tonight. In recent times we are getting good economic numbers which has kept the markets going up. There is a chance at least one of the two numbers come out good and we move towards our next upper levels, possibly with a big green. Will that happen? Lets hope so. Enjoy your weekend and all the best.