xjo weekend zoomba lounge, page-5

In Australia:

XJO +0.6%
Twenty Leaders +0.4%
50 Leaders +0.5%
Financials +0.5%
Materials +0.9%
Small Ordinaries +0.8%

Comment: A moderately good day on high volume.

Technical Comment on the ASX200:

The XJO finished at 4239.6. Sitting above the 15-Day MA and below the 150-Day Moving Average.
Indicators:
Stochastic: 87.9. Overbought.
RSI.9 is at 62.7. Above 50. Positive
MACD Histogram. Marginally above Zero. Neutral. Negative divergence
MACD. Above Zero. Positive.
CCI.14: +124.8. Overbought

The CCI and Stochastic are overbought. MACD Histogram is registering a negative divergence. These are caution signs.

Yesterday, I thought the top was in. I expected a down day. We got an up day. But it still didn’t surpass yesterday’s top. So the call that yesterday was a top remains alive.

We still need a solid down day to confirm.

You can see from the above chart just how important the current level is. Since early May 2011, the major down trend line has proved to be be an impenetrable wall for the XJO. If it breaks to the upside, that would be very bullish.

At this stage, the probabilities lie to the downside.

But – the medium term trend is sideways, and the short term trend remains up.

Respect the trend.

Redbacka