In Australia yesterday:
XJO up modestly +0.34%. Resources continued to lag the broad market index. Energy -1.18% and Miners -1.98%. Falls in those two sectors were more than off-set by a strong performance from Financials +0.74%
The chart is still moving more or less sideways, although the short-term trend channel is predicting a move to the upside. Events overseas last night suggest a strong move by our market on Monday.
Overnight:
Markets opened higher and then pushed higher and higher for a strong bullish trend day.
Dow Jones+1.77%. SP500 +1.74%. Nasdaq +1.79%, NYSE +1.35%, Banks +2.2%, DAX -0.07%.
Nasdaq set a new all-time high. SPX has pushed past Moving Average resistance but still faces horizontal resistance. DJ and NYA are both faced with resistance of the 50-Day MA.
The robust move last night was based on a very positive move in employment data contained in the Jobs Report
SP500
The context has now turned positive with the chart breaking out of its large symmetrical triangle.
The March Jobs Report and the February Jobs Report were both very positive. The market reaction was diametrically opposite in the two months. In February, the market went down after the good jobs numbers. In March, the market went up after good jobs numbers. Conclusion: the market is irrational!
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Not really. Prior to the February numbers, the market had been extremely overbought and needed to pull-back. The jobs numbers gave it a “reason”. In March, the market was mired in a sideways symmetrical triangle, the jobs numbers gave it a “reason” to break-out.
So - where are we now:
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Looks like we're halfway back up the sine curve.
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Commodities:
Commodities: DBC -0.6%. Energy +1.54%. Gold +0.1% and Industrial Metals +1.57%. Copper Producers +1.19%.
With the American market very positive and good results in the Resources we should have a good day on Monday, breaking above resistance of the 50-Day MA.
Optimism Rules! OK!
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(20min delay)