AJX Charting, page-773

Some strange behaviour with AJX - the sell queue has dropped by about 200K since the close yetserday. The 2 X 100K centrepoint sales were off market and so had no impact on the queues at the time. Turnover excluding the centrepoint sales was very low. At the moment (10:17) no matches so we have a bit of a bulls V bears standoff right now.

The bots were asleep most of the time. I get the impression that the instos are running scared generally, here and overseas and are unusually cashed up and are waiting for some sort of decisive signal about US rates and besotted with China. Tax loss selling is a factor and probably accounts for some of the irregular dumps we have seen over the last week or so with AJX. It is a bit like watching paint dry at the moment. In these circumstances erratic moves are likely to happen.

In the continuation pattern chart that I posted yesterday I did point out that breakouts from continuation patterns in the majority of cases go with the preceding trend but there is always the lesser possibility that they can go against the preceding trend or they can simply fizzle out. That is why I as a more conservative investor would be waiting for an upper pennant trend line break in these condtions.