Dow Industrial Index up +1.03%. S&P500 +0.89%. Dow Transport up a whopping 2.57%. Russell 2000 also positive +1.53%.The Europeans were more in line with Australia yesterday: London +0.02%, France 0.64%, Germany 0.04%. France was the odd one out - it often leads.
The American Bank Index(+2.7%) broke above the falling wedge I mentioned yesterday. That's a healthy sign but it still has some heavy overhead resistance. We still need some follow through buying - but the size of today's move is positive.
Gold in Oz Dollars was flat -0.01% after a seesaw night. The Ozzie Dollar was also flat and remains in a sideways consolidation. This can go either way. Longer term, the Oz Dollar is in a large right-angled triangle. These normally break upwards.
West Texas Oil (-0.45%) fell a little last night but remains at an elevated price level. The oil price is currently reacting to geo-political events and affecting world stock markets. The bitty dip last night is no sign of reversal.
The market's not out of the woods yet. It's still in a trading range. A break above the upper level of that box shown on the Dow Industrial Index is needed for the bulls to be happy. The shorters would be happy for a break lower.
I mentioned in the weekend report that Uncle Bennie's boys would be active in the treasuries market this week on Tuesday, Wednesday and Thursday. That action (usually referred to as "printing money") improves liquidity in the American financial system which usually flows on to the stock market. If today's positive action was due to that as well as a dip in the oil price, then a continuation of those positive events could see this market back on the upward track.
Good luck
Red
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