In Australia yesterday: [IMG] XJO up moderately +0.48. The Index...

In Australia yesterday:



XJO up moderately +0.48. The Index is overbought, but that doesn’t seem to matter these days. Overbought stays overbought in strong markets.

On all time-scales from Very Short to Long, the trend is up. Stay with the trend.

Overnight Markets:



Dow Jones +0.1%. SP500 +0.31%. Nasdaq +0.74%. NYSE Index +0.00%. Germany +0.28%. U.S. Banking Sector -0.17%.

Driven by Apple, Nasdaq was up strongly. But the broadest Index (NYA) was flat. Advance/Decline Ratio was 49%, marginally on the bearish side. While the market remains in this unbalanced state, it is vulnerable to a sudden downturn.

SP500:



On every time scale from Very Short Term to Long Term, the trend remains up. Negative divergences on indicators suggest that bears will win the battle. Negative divergences are clear on the CMO (a short-term indicator) and MFI.

Commodities:

DBC +0.62%. Energy +1.38%. Industrial Metals -0.48%. Copper Producers -0.15%. Gold -0.47%.

Full Weekly Report tomorrow.