XTL 14/15 Dec. Charts, page-5

21/12/24. U.S. markets hold at crucial support. Demand overwhelms supply.

Dow Jones Industrial Average Chart

Dow Jones finished up +1.18% last night but well off its highs. Earlier in trading it was up over 2%.

Dow Jones bounced right at an important horizontal support level, and is now facing horizontal resistance and the 50-Day EMA.

But Volume (width of current candle) was the heaviest since 20 September, with demand outstripping supply. That suggests this pull-back is over.

SP500

SP500 has bounced right at a crucial support/resistance level which has been touched multiple times in the recent past. It is now facing resistance from the 20-Day and 50-Day EMAs.

Volume was lower than it has been in the past, which is normal given the holiday season.

The fact of huge volume coming into the Dow Jones suggests that the index was the vehicle for manipulation higher. The Dow is often used, because of its much smaller number of components, to leverage the market one way or the other. In this case to the upside.

BHP yesterday in Australia.

Yesterday saw the heaviest volume in BHP in the past 100 days. Although down -0.23% plenty of intraday buying occurred in BHP giving it a bullish intr-aday candle. That's a good sign for the Australian market that the pull-back is over. Such heavy volume heading into the pre-Christmas days is highly unusual.

Commodities

Commodities Index +0.64%. Energy +0.63%. Base metals +0.56%. Agriculture +0.99%. Gold +1.04%

Look at that huge white candle on Base Metals.. That represents big demand coming into Base Metals, which is bullish for ASX miners.

Take care.