Sat. a.m. 23/1/21. Mixed results again for New York stocks.In...

Sat. a.m. 23/1/21. Mixed results again for New York stocks.

In Australia yesterday:

XJO -0.34% fell modestly, failing at major overhead resistance. I thought that wouldn't hold as much of a barrier as it was set so long ago, late 2019. But I may have been wrong.

We now have very tight support/resistance. Support at 6757, resistance at 6832. If support fails, XJO will be back in its recent consolidation zone. If resistance fails, the next level will be the Feb. 2020 high of 7163. I'm currently leaning to an upside break above 6832, which would maintain the current bullish trend.

Overnight:

Dow Jones -0.57%. SP500 -0.3%. Nasdaq +0.09%. Small Caps +1.27%. Banks. -0.2%.

Banks appear to have found support at the 20-Day MA.

Over the past two months it is easy to see that the 20-Day MA on all five of the above indices has provided support - and the buy-the-dippers have been taking advantage of that.

SP500:


SP500 was down modestly overnight, but remains above horizontal support and within its up-sloping bullish channel. Stay with the trend.

Commodities:

Commodities Index took a heavy dive -1.69%, back to the 20-Day MA. A big fall in Energy -1.12% was a major influence on DBC. Base Metals fell modestly -0.23% and Gold down -0.79%. Gold showed strong intra-day buying and that now fills the gap left behind on Wednesday.

AAII Sentiment:

AAII sentiment has been steadily falling since its high back in mid-November. That's been happening while the SP500 has been steadily rising.

Sentiment is now at about the historical average.

Contrarians will take that as a positive sign.

Sentiment shouldn't be used as a timing tool - but it often provides warning signals.