Usual ASX Monday blues going very tentative?Yes ESS remained...

Usual ASX Monday blues going very tentative?

Yes ESS remained flat to finish on 46c. Our volume was average, just over 2.8m shares traded. It was narrow trading range today. Good to hold as resource stocks today were not in the mood to fly.

ASX Li stocks remained bound range for most stocks tonight, trading in a small range. Of the 54 stocks that I track, on the average it remained flat, no gain or loss.


What next -

ASX today followed US Indices with close to 1% increase. But most resource stocks I follow were not buying that. This has been the story of ASX Resource stocks for quite sometime of how they trade on Monday - very tentative and fearful of a big fall on US markets overnight. So all the Friday gains are usually not materialised. ASX indices though had a slight jump in closing auction - so ASX play masters expect some positive tonight.

SP 500 has reached one major milestone - it closed above 3900. I have been calling 3 numbers for sometime if we go up - 3800, 3900 and 4100/4150. So we have done first, second we need confirmation - it needs to stay above or be in close proximity to 3900. If things don't turn out well - 3780 will be the most crucial level to hold, though there are numbers above that. Our immediate target still is 4100/4150 - and I expect a big fight over there if we reach it.

Next significant news is Wed Interest Rate and Press Conference after that. There are nearly 3 trading days before that. I have a feeling markets may be tentative after good gains last week. If markets run away too much, Powell may say something to spook it. But bulls are on a roll, market sentiment has improved considerably, so it wouldn't be a surprise to see the momentum in the up direction leading up to interest rate decision.

So what will happen tonight? Its an unpredictable night. Major earnings reports are done, though fair few still there. PMI and Manufacturing index, just after market opens - they could provide some direction. It wouldn't surprise me to see both reds and green tonight. It would be good to hold 3900 for another day, which would be a good confirmation of the hold of the zone. Will that happen? Lets hope so. All the best