Weekend Charting and Chat

(From the Financial Review.)

In Australia yesterday:

XJO finished flat yesterday -0.03% after being up much higher early in the day. We may be seeing the start of a small pull-back, but the short-term trend and medium-term trend remain up.

Banks were again weak but the downside momentum seems to be slowing. Against the general trend, XXJ saw some intra-day buying on Friday. That's a positive - look for an up day on Monday to confirm.

Overnight:

Mixed results in America. Dow Jones +0.26%. Sp500 +0.09%. Nasdaq -0.25%. Russell 2000 +0.18%. As with the XJO intra-day selling was evident.

SP500:

SP500 remains marginally above the 200-Day EMA, but this session's intra-day selling puts some doubt on the bullish nature of this advance. Money Flow Index is showing a possible negative divergence after hitting overbought levels. The odds of a pull-back are increasing.

Commodities:

Commodities Index (+0.9%) got a push up from Energy +1.75%. Base Metals -0.37%. Gold -0.2%.

VIX:

VIX is hitting the 200-Day MA and the lower Bollinger Band. A clear positive divergence exists on the MACD histogram. Expect a rise in volatility in the next few days.

In Australia on Monday, eyes will be on how the banks react to the Hayne Report. It may be a case of "buy the news".