eurovision (or a lack of) tuesday, page-50

In Australia:

Twenty Leaders +1.0%
50 Leaders +1.1%
XJO +1.1%
Small Ordinaries +1.4%
Financials +0.9%
Materials +1.6%

Comment: Another good strong day today, on volume up quite a lot on yesterday, but still only 93% of the 20-Day Average. Breadth was good (see Small Ords) and both Financials and Materials were strong – for the second day in a row. Good signs. Today’s strength surprised me a bit – I thought we’d have a pause today – but no, yesterday’s strength saw follow through buying. The afternoon session was not all that strong, so it might have been Johnnie-come-latelies jumping on yesterday’s band-wagon. The monied guys bought yesterday.

Technical Comment on the ASX200:
The XJO finished at 4114.4. At resistance set up six days ago.
Indicators:
Stochastic: 16.1. Above its signal line but below 20.
RSI: 42.8. Back Above 40. In the neutral zone.
MACD Historgram. Above zero. Positive.
MACD: Below zero. Negative. But turning up.
CCI: -45.6. Needs to get above zero.

The 10-Day EMA remains below the 20-Day EMA. Negative.

The momentum indicators have all turned up with plenty of positive divergences.

Although today’s volume was up on yesterday it wasn’t all that strong – as I indicated in the comments above. The high of six days ago had a volume of 1.01Billion shares on the XAO. Today’s volume was shy of that 0.97Billion shares. If this market is to go on higher – I’ll be looking for an up day tomorrow with a volume well in excess of 1.01 billion.

I'm continually fascinating by the way (sometimes) quite diverse approaches seem to produce the same results. Voltaire is the cycles man, par excellence. His cycles are calling a low around now - and so does classical TA (like me). No wonder I respect other methods - especially when they agree with me. :)

Volt is now confident. I'm semi-confident. I'd like to see a strong up day tomorrow on increasing volume to feel sure.

Volt always hedges his bets - he says he could be wrong. :) I hedge my bets too - contingent and probabilistic.

But - I did stick my neck out about last Tuesday's Dow action - that was a low. At least in the short term. Let's see how it goes.


Redbacka