Yesterday in Australia: [IMG] Australia followed the lead from...

Yesterday in Australia:


Australia followed the lead from the German Dax and had its best day in almost a year. +1.29%. The best performing sector was Financials (XXJ) up +1.9%. This movement might mean the end of the poor performance in the banks, but we’ll have to wait on more evidence before being confident.

The XJO broke well above its flag formation – expect a pull-back now to test the old restraining top line as support.

Overnight in America:


Dow Jones -0.34%. SP500 -0.1%. Nasdaq -0.19%. Russell 2000 -0.05%.

Intra-day buying pulled the American indices up off their lows. The Dow Jones hit the 20-Day MA and bounced strongly. That’s a good sign but requires a follow-through day.

Friday was Op-Ex day which accounts for the high volume on the American indices. So ignore that as an technical signal.

SP500:



SP500 finished down marginally -0.11%. The long lower tail on the today’s candle shows the strength of the intra-day buying. Indicators remain turned down, so wait until we get confirmation of a good up day.

Commodities:

Base Metals -2.2%. Energy -2.91%. Gold -1.65%. Copper Producers ETF -2.65%.

BHP in NY -3.3%. Rio -2.92%.

Those commodity prices will wreak havoc with Australian resources stocks on Monday.