Tues. a.m. 19/5/20. Dow Jones - Whooshka!
Overnight in America:
Dow Jones +3.85%. SP500 +3.15%. Nasdaq +2.44%. Small Caps +7.21%.
Overnight, the major indices gapped up at the opening and then just kept going, until just a little bit of a dip at the end. Small Caps Index was the hero.
Europe was similarly buoyant with the Pan-European STOXX 600 up +4.1%.
SP500:
Here's a one-month one-hour chart of the SPX:
SP500 finished at support/resistance of 29 April. Tomorrow could see a test of the 200-Day Moving Average (not shown). That's a major hurdle.
Accumulation/Distribution (bottom panel) shows a negative divergence but that can happen when a big up-gap occurs. Perhaps of more significance is the negative divergence on the MACD Histogram from Friday to Monday. We'll see how that plays out tomorrow.
Commodities:
Unbridled optimism overcame the Commodities Index - and it took off. Shut the gate?
Commodities Index +2.86%. Base Metals +3.03%. Energy +5.88%. Gold -0.76%.
It seems our resource stocks had a premonition yesterday about the renewed overnight optimism in Base Metals and Energy. Yesterday, OZR (ETF for Australian resource stocks) was up +4.68%. Let's see if they can build on that today.
Iron Ore: +3.1%.
Our market yesterday was led up by the big resource stocks but the banks wallowed. MVB (ETF for banks) -0.69%. Banks have also been weak in the U.S., but not last night. Banks up +7.9%, so we might see strength in our banks today.
Overnight Oz Futures +1.9%. That seems to assure us of another strong day today.
BHP in Australia has been stranded in the Gap which formed early in March. Yesterday it burst through that resistance so we should see more upside today.
(20min delay)