Sat/Sun 7/8 Nov., page-6

Sat. a.m. 7/11/20. Election Rally in U.S. begins to stall.

In Australia Yesterday.

XJO was up yesterday +0.82%. It has now finished opposite the congestion zone which formed in mid-October.

RSI(2) is above 95 - that's into the danger zone.

I'm looking for a consolidation or pull-back. Plenty of near-by support exists, so any pull-back is likely to be bought.

Overnight:

Dow Jones -0.24%. SP500 -0.03%. Nasdaq +0.04%. Small Caps -1.04%. Banks -2.05%.

This looks like a case of "buy the rumour, sell the fact".

SP500:

On cue, SP500 has stalled at oblique, down-sloping resistance. RSI(2) yesterday was above 95 - that's into the danger zone.

Plenty of support lies below. Any pull-back is likely to be bought.

At this stage the short-term up-trend remains intact.

COMMODITIES:

Commodities Index -0.38%. Base Metals +1.13%. Energy -2.05%. Gold +0.14%.

Base Metals was a strong result, but the gap up followed by an "evening star" candle might suggest exhuastion. So the strong result in Base Metals might not translate into a strong day for our miners on Monday.

AAII Sentiment:

American Association of Independent Investors Survey shows they are the most bullish since late February. That could be a contrarian sign that the current rally is under threat.

(Don't use contrarian indicators by themselves to guide investment decisions.)

I wonder how DCT is feeling today?