Weekend Charting and Chat - 21st October 2016, page-7

In Australia, Friday:



The XJO remains pinned between overhead resistance of the 20-Day MA and horizontal support. Levels are: 5456.2 and 5405.6. That's a fairly narrow range of about 50 points. The index finished yesterday at 5430.3. It lost over 30 points at one stage to be down to 5410.8 (just above support) but then recovered a lot of lost ground to be down -11.8 points.

In America:


Indices began the session well down, but steadily clawed back ground finishing down a little, except for Nasdaq which finished in positive ground.. DJ -0.09%. SP500 -0.01%. Nasdaq +0.3%, New York Composite -0.024%, Russell 2000 -0.14%.

NYSE NewHigh/NewLow Ratio is bullish at 76%. NLs are at a non-threatening 20..

SP500 (Candle Volume Chart):



Friday was Options Expiry in America. OpEx Day is usually a narrow range, high volume day. Friday was true to form. The flat finish (down -0.01%) suggests that the Market Makers had the market where they wanted it, and kept it that way through to the finish.

The Index this week has stayed above the mid-September lows and below overhead resistance is provided by the 20-Day and 50-Day MAs which are in close proximity to each other. Indicators are all in bearish territory. The short term trend is sideways. Next week is likely to provide us with a decisive movement.

Commodities:



Above is a six-month Candle Volume chart of the Commodities ETF (DBC). Yesterday, it was up +0.39%. I've been expecting this to head towards the big blue horizontal resistance line on the chart. Negative divergences on CCI, RSI, short term Stochastic, and DPO suggest that will not happen. Chaiken Money Flow, however, remains on the positive side. Support is now provided by the 20-Day MA and horizontal support. Until those two are broken to the downside, I'll remain optimistic, but open to the idea of a downside move.

Energy +0.93%. Industrial Metals -0.22%. Gold +0.07%.

Full Weekly Report tomorrow.

RB.