martis's - worry when i'm worried - thursday, page-55

XJO (ASX200) +0.2%
XTL (Twenty Leaders) +0.2%
XFL (Fifty Leaders) +0.1%
XFJ (Financials) +0.2%
XMJ (Materials) +0.2%
Energy +0.2%
XSO (Small Ordinaries) +0.5%

Today was a narrow range reversal day giving a small shooting star candle. These are often seen as a market that is topping. Today's volume was lower than yesterday and below both the 10-Day and 50-Day Average. All of that is not confidence inspiring. On the other side of the coin, breadth was good with Small Ordinaries +0.5%. AdvancingVol/DecliningVol was good (on a relatively flat day) with a 1.7:1 ratio.

INDICATORS:

RSI.9: 54.4. Positive. Plenty of room to move to the upside.
MACD Histogram marginally above Zero.
MACD below the Zero line. Negative. Positive divergence from Index chart.
Stochastic: 37.5. Above 20 and above its signal line.
CCI.14: +14.6. A failure here (back below zero) would be very negative

Using conventional analysis all that adds up to a buy signal, although I'd prefer to see the MACD back above zero.

The medium term Pitchfork is canted to the bullish side - although today's action (short term perspective) suggests a pullback. The chart has been rejected by the Median Line of the Pitchfork and an important horizontal resistance level.

Today's intra-day action is a worry.

Plus, the three day candle pattern is a rare one - I've previously observed this as a reversal pattern. Now - you won't see that pattern in any book on Candlesticks. It's just something I've observed. It consists of:

Day One - a small "hanging man" followed by,
Day Two - a big up day with no tails top or bottom, and then
Day Three - a small shooting star. To be negated as a bearish pattern it requires an up day on Day Four.

So let's see how it works out.

Earlier today I expressed my concerns about AAPL (Apple). Those concerns remain.

Good luck
Redb