XJO - Week-end Charts and Chat. 13/14/June

Sat. a.m. 13/6/20. Wall Street recovers.
Yesterday in Australia:

ASX200 down heavily for the second day in a row, -1.89%, but some buying did come into the market as it was down about -3% in early morning trade.

XJO is now down to the 20-Day MA. We could get a pause here or a move back up.

Overnight:

Dow Jones +1.9%. SP500 +1.31%. Nasdaq +1.01%. Small Caps +2.55%. Banks +3.97%.

SP500:

SP500 rebounded strongly after falling below the 200-Day MA early in trading last night. That's a promising sign but it needs follow-through buying on Monday to consolidate the rebound.

I've been using a multi-Supertrend indicator on the charts in recent times. Like most indicators it tends to lag market action but provides reasonably good buy and sell signals and can give an indication of sideways trends. Thursday fall produced a clear sell signal. That's a worry. A break back below the 200-Day MA would suggest further falls.

Commodities:

I can't access thumb-nail charts for Commodities, but here are the results:

Commodities Index +0.42%. Base Metals +1.44%. Energy +1.02%. Gold +0.14%.

With the Banks in America and Commodities looking positive - that augurs well for Australia on Monday.

Put/Call Ratio:

The Put/Call Ratio got down to an extremely low level on June 8. That's the reason we've had such a big fall in the markets. Pundits blathered on about a rise in covid-19 cases in the U.S. and concerns about the Fed's comments on the economy. Maybe. But, basically, on 8 June everybody who was anybody was long this market. Even blind freddie could see it. There was no-one left to buy. So the bears stepped in and made a killing. Bears - Mission Accomplished.