Body Piercing Wednesday, page-2

XJO flat today -0.1%.  Today we saw the inverse of yesterday.  Today we were down early in trade, then recovered those losses.  After that, we had a slow drift through the day to finish flat.  Basically, the market doesn't know what to do - so it's hedging.  Going sideways.



It could be argued that the XJO is now in an upsloping, bullish channel.  If that's the case, (debatable), then we should be looking at a move up to the top of the channel.  (We can hope.)  Short-term, the XJO continues to drift sideways.  

Looking at the sectors, we see an unusual arrangement:



Financials and Materials were both up. Everything else was down. That's unusual. Together they are the biggest sectors in our market >60%.  If both are up, we usually see a degree of correlation across sectors.  Not today.  With only two sectors up, breadth was weak.  The standard interpretation is a bearish one.  But it's difficult to make sense of the current situation.  Maybe this is more end-of-financial-year madness.

RB.