For readers new to my report, I don't publish on Friday...

For readers new to my report, I don't publish on Friday evenings.  Saturday's morning report includes a summing up of Friday action in the U.S. and Australia.

In America:

Major indices gapped up on opening and then added to the positive sentiment during the session



DJ +0.94%, SP500 +0.73%, NYA +0.85%, Nasdaq +0.54%, Russell2000 +1.5%.
The Banking Index was up very strongly +2.24%.  This seems to have a flow-on effect to the Australian banks, so that's looking good for our XJO on Monday where the banks have an overweight presence compared to American indices.

SP500:



SP500 finished back at overhead resistance.  All indicators on this chart are showing potential negative divergences.  This continues to look like topping action despite the good result from today.

NY VIX:



This is looking interesting.  The VIX dropped back from overhead resistance of the 50-Day MA  and is at horizontal support around 11.  Any lower and it is into extreme complacency levels.  The nexus will be broken in the near term.  Higher volatility is a contrarian call.

Commodities:

DBC -0.06%.  Industrial Metals -1.42%.  Energy +0.00%.  Gold +0.25%.  Iron Ore unchanged.  (IO is unchanged because the Chinese market is closed for holidays.)

In Australia yesterday:



We had an unusual intra-day pattern in trading yesterday.  Intra-day trading can be broken down into three sessions each of two hours, morning 10-12, mid-day 12-2, afternoon 2-4.  Usually, the mid-day session tends to be flat while traders go out for lunch and the machines run on auto.  Yesterday, the morning session was relatively flat, the mid-day session fell heavily, and the afternoon session was relatively flat, with the result that the XJO finished down -0.42%.  What to make of that?  Don't know.  

But, as mentioned earlier in this post, the banks should carry us higher on Monday.  I doubt we'll break out of the sideways consolidation we're in at the moment.  Overhead resistance is at 5714.  

Full weekly report tomorrow.

RB