XJO - Bear Posts only (Factors which might cause the markets to fall), page-16336

U.S. indices continue down. Gold gaps down to close much lower. ASX to open lower on Monday.

Dow Jones -0.93%. SP500 -0.71%. Nasdaq -0.81%. Small Caps -0.69%. Banks -0.15%.

SP500

SP500 has had three strong up trend movements since bottoming out in April from a strong down trend.

In each of those up trends, the SP500 consistently closed above the Bollinger Bands shown on the chart. These are not the usual BBs with defaults of 20/2, but tighter BBs which help to show the strength of the trend with new settings of 10/0.8. We've now had three down days and the chart has closed below the BBs on the past two days.

Each of the three strong up trends since April were growing shorter as shown clearly on the True Strength Index. So it's no surprise that we are now seeing a pull-back.

The chart is now going level with a previous congestion zone, so we may see consolidation here, but the character of the chart has changed, so the most likely scenario in the medium term is more downside.

Commodities.Commodities are all in bear trends and last night was ugly. Resource stocks will get hit hard on Monday.

Commodities Index -1.38%. Energy -2.64%. Base Metals -0.83%. Agriculture -1.29%. Gold -1.79%.

Overnight ASX Futures.

ASX Futures were down over night >0.8% so we can expect a weak opening on Monday morning.

Watch the charts and stay vigilant