haspete's - someone let brutus out - wednesday, page-121

XJO (ASX200) +1.1%
XTL (Twenty Leaders) +1.2%
XFL (Fifty Leaders) +1.2%
XFJ (Financials) +1.2%
XMJ (Materials) +1.7%
Energy +1.6%
XSO (Small Ordinaries) +0.9%

Comment: Strong up day on sharply improved volume. That’s a worry. Add to that – the weakest of the major indices today was the Small Ordinaries, up +0.9%. It usually follows along with Materials and Energy. Looks to me like a bit of profit taking behind the scenes by some smart operators.

INDICATORS:
RSI.9: 63.4. That’s not extreme – but in a zone where reversals can occur.
MACD Histogram. Marginally above Zero. Neutral
MACD . Above Zero. Positive. It could be setting up for a negative divergence.
Stochastic: 60.4. Above its signal line. Positive.
CCI.14: +101.8. Just into overbought territory.

The XJO closed at 4346.1. That’s at resistance set up in late October.

Indicators are just sneaking into territory where a reversal could occur. MACD is looking suspiciously negative – but until the market turns down, it’s just a suspicion.

I’ll be surprised if this has more than one more day up left in it. But – it wouldn’t be the first time I’ve been surprised. :)

In the meantime, the short term trend is up.

Good luck
Redbacka