hctv presents thunderbirds monday, page-25

In Australia:

Twenty Leaders +0.9%
50 Leaders +0.8%
XJO +0.8%
Small Ordinaries +1.1%
Financials +0.7%
Materials +1.4%

Comment: A strong day today, volume was low. Both Materials and Financials performed well – an unusual event.

Technical Comment on the ASX200:
The XJO finished at 4396.6. S/R: 4360/4420 (round figures). One more mountain to climb.
Indicators:
Stochastic: 94.1. Overbought
RSI: 64.3. Positive. Nudging up into rarefied air.
MACD Historgram. Marginally below zero. Neutral.
MACD: Above zero. Positive
CCI: 149.4. Overbought.

The 10-Day EMA remains above the 20-Day EMA. That will keep the bulls happy.

The long term trend remains up. The short term trend is up.

If you look at the lower panes, you will see that Stochastic, RSI and CCI are now at levels not seen since February, 2011. This market is overbought.

Now – here’s a statistic I haven’t referred to before. The unchanged issues (13-Day MA) has reached its highest level since I began keeping statistics on this at the beginning of 2011. What does it mean – fewer and fewer stocks are participating in this rise. Its not a timing mechanism – but add that statistic to the oversold readings (highest since Feb. 2011), and you’re looking at a disaster waiting to happen. This situation can continue for a while yet – but it will not end happily.

The chart is also very close to a "double whammy" resistance - horizontal resistance and the restraining line of the rising wedge. The confluence of two such fairly long standing restraints is usually very difficult to overcome. Given the situation in the above paragraph, I think I'll stick my neck out and say that tomorrow is likely to be a top of some signficance.

Redbacka