From Tuesday Evening: ” … the break will probably be a false break and trap a lot of players.” And … this is what we got yesterday:
It’s not unusual for symmetrical triangles to fail. The XJO remains within a wide sideways channel. Until we get a decisive break out of that channel, one way or the other, it’s best to remain on the sidelines. These formations are great for smart short-term traders.
In U.S.
After Thursday’s volatile session the American market settled down with mainly flat results.
DJ +0.15%, SP500 -0.13% Nasdaq -0.12%, NYA -0.07%, Russell2000 -0.3%. Stochastic RSI remains in bullish territory on four out of five indices. Only R2K has fallen into bearish territory (below the mid-line).
Financials flat +0.00%.
SP500:
SPX down a little -0.13% but showed some intra-day buying. The chart is into no-man’s land. All indicators are on short term sell signals. The potential for a pullback has increased.
Commodities:
DBC +0.54%. Energy +1% Industrial Metals -0.24%. Copper Producers ETF was -0.08%. Gold +0.75%.
Rio up in NY+1.61%. It is knocking on a major horizontal resistance level. MFI is showing a clear negative divergence so we may see a pull-back. BHP in NY +1.37%
BHP in NY +0.83%. Comments on Rio can be added for BHP.
After Friday’s big fall on the XJO we can expect, at worst, only a little downside on Monday. Monday is also the last day of the month which has a tendency to bring money into the buy side.
RB.
(20min delay)