Overnight Markets: [IMG] Dow Jones +0.19%. SP500 +0.06%. Nasdaq...

Overnight Markets:



Dow Jones +0.19%. SP500 +0.06%. Nasdaq -0.08%. NY Stock Exchange +0.13%. Germany +0.06%. U.S. Banks +0.81%.

The slow melt-up continues with the Dow Jones up nine days in a row – that’s rare. RSI14 is above the overbought level of 70 on both the blue chips (Dow Jones) and the broadest market index (NYA). Bullish 20/50 SMA x-overs have occurred on SPX, NYA and DAX clearly negating the previous bearish x-overs. The strong rise in the U.S. Banking Index provides some support for our banking sector which has been doing well lately, although not yesterday despite strong U.S. Banks.

Indices initially dropped after the Fed’s announcement, but then recovered.

SP500:



RSI9 for the SP500 is into the overbought zone >70. Expect a consolidation of the up-trend or perhaps a pull-back. Any pull-back is likely to be bought. CCI is beginning to show a potential negative divergence, so a small pull-back is likely.

Commodities:

DBC +0.85%. Energy +1.03%. Industrial Metals +0.94%. Copper Producers ETF +0.24%. Gold -0.8%. Iron Ore –0.4%.

Commodities are positive for our market today and U.S. banks had strong rises again. That didn’t do much for our market yesterday, but perhaps today will be different.

The Fed continues to say it will raise interest rates one more time this year. Promises? It did affect the POG (down) and the U.S. Dollar (up).

The portents for today are a little stronger than for yesterday. Yesterday we finished flat, so today? Downside seems limited, bias is to the upside. Today is also Options Expiry day which often results in some to-ing and fro-ing. Play the ranges today. We should open on the upside.