Last night in the U.S. Jobs Report was released and the...

Last night in the U.S. Jobs Report was released and the employment situation worsened - that increases the likelihood of a rate cut - which is good for stocks.

Dow Jones +1.18%. SP500 +1.26%. Nasdaq +1.99%. Small Caps +0.78%. Banks +0.83%.

SP500

Last night's Jobs Report introduced a lot of optimism in traders and the market opend with a big gap up - but that was about it for the day. Not much happened after the opening.

The doji candle finished right at the dynamic resistance level of the 50-Day MA. That's a hurdle it has to overcome.

In the past are two levels of congestion - supply/demand zones - which the market also has to navigate. The most recent one occurring at the beginning of April is a supply zone - that's where supply overcame demand and the market fell. If supply remains at that level then the market will fall again.

Most of the indicators are back into bullish zones, but the Detrended Price Oscillator (DPO) is the out-lier. It remains in its bearish zone.

The next couple of days trading will see a decision made by the market about whether it is bearish or bullish. It's had a good rally off the low of 19 April. It's risen +3.75% since then. Expect a pause before a push into bullish territory - above the supply zone - or a resumption of the down trend.

Commodities.

Commodities Index flat +0.13%. Energy -0.44%. Base Metals +0.74%. Agriculture +2.22%. Gold flat -0.08%.

Energy might be developing a base after a big ABC downside movement. Look for a big bullish candle to indicate that the pull-back is over.

Yesterday in Australia

XJO had a positive day, +0.55%, but it is nowhere near as positive as the American market.

It finished Friday at the 12-Day MA and well below the dynamic resistance level of the 50-Day MA where supply has come into the market previously.

Our market will surely follow the U.S. up on Monday but I doubt it can make it up to the 50-Day MA. That looks like a bridge too far.

BHP in the U.S.
BHP was up last night in the U.S., +0.82%, but that's not a big increase given the performance of the U.S. market on Friday. BHP in the U.S. remains well below its 50-Day MA which has been an important support/resistance level for the stock since late March. It needs to get above that to provide optimism of a bullish upside movement.

BHP finished last night at 56.40 - with major horizontal support at 55.20. 50-Day MA currently at 57.41.

Good luck.