yotta's chaotic, disordered, confused thursday, page-196

XJO (ASX200) -0.0%
XTL (Twenty Leaders) + 0.4%
XFL (Fifty Leaders) +0.2%
XFJ (Financials) +0.2%
XMJ (Materials) -0.8%
Energy +0.1%
XSO (Small Ordinaries) -0.1%

The market dropped sharply in early morning trade in sympathy with the big drop in America overnight. The market recovered but not all that confidently. The figure for the Twenty Leaders tells a story. That was much stronger than other major indices - so this was a market held up today by a few blue chips. The Advancers/Decliners Ratio for the Fifty Leaders (XFL +0.2%) was a lack-lustre 2:3. Telecoms (read Telstra) was the stand-out sector +5.4% and Financials (ex Property Trusts) was up 0.6%.

INDICATORS:

RSI.9: 35.02. It still needs to get above the mid-line.
MACD Histogram below Zero. Negative.
MACD below the Zero line. Negative.
Stochastic: 40.3. Above its signal line and above 20. Positive.
CCI.14: -73.9. Above -100. Positive

The market in the broad sense marked time today. The fact that it recovered from the early sell-off may be a good sign. Volume was was well above the 50-Day Average - but about equal to the 10-Day Average .

The chart shows that the index is at the first line of resistance - the old oblique down trend support line from May-June, 2011. A kick up above that should see the 13-day Moving Average tested. Given the huge rise over the previous two days, a pause today was not unexpected. A break upwards tomorrow would be a great result.

Still no buy signal - there's plenty of time. But the jury is still out on this one.

A break back below 3950 would be very negative.

Good luck
Redb