15/10/22. In America: What a difference a day makes.Dow Jones...

15/10/22. In America: What a difference a day makes.

Dow Jones -1.34%. SP500 -2.37%. Nasdaq -3.08%. Small Caps -2.31%. Banks -1.39%.

SP500.

Thursday shows a bullish engulfing candle. Friday shows a bearish dark cloud cover candle.

That leaves the market in a quandary. Which one do we believe?

Since late August, SP500 has hit the 20-Day MA four times and then pulled back.

SP500 must break decisively over the 20-Day MA if this is to be the start of a major counter-trend rally.

Commodities.

Commodities Index -1.99%. Energy -2.39%. Base Metals -1.36%. Agriculture -0.59%. Gold -1.25%.

Yesterday in Australia.

XJO had a big rise on Friday +1.75% following on from the Thursday night rise in the U.S. We can expect a big fall on Monday after last night's fall in America and poor Commodity prices.

XJO remains in a descending expanding wedge. This is a bullish chart pattern.

Friday's action saw the XJO bounce off the 50% retracement of the previous rise from early October. I was looking for such a rise to indicate a possible rise above the restraining line of the descending wedge. That remains in play despite last night's big fall in the U.S. A break above the restraining line should see an attempt to test the 50-Day MA.

Note that the restraining line of the descending wedge is more or less coincident with the 50-Day MA. That's strong resistance. A break above those would be bullish.