moolamanic's - holdin' 'n' grinnin' - tuesday, page-112

XJO (ASX200) -1.3%
XTL (Twenty Leaders) -1.3%
XFL (Fifty Leaders) -1.3%
XFJ (Financials) -1%
XMJ (Materials) -2%
Energy -2%
XSO (Small Ordinaries) -1.7%

Comment: We now have the expected reversal day. Solidly down and reversing the short term up trend. Volume was low. Only 79% of the 10-Day Average. Monday is usually the weakest day of the week for volume. Today's volume was just 85% of yesterday's volume (which was about normal for a Monday). So we can safely say that there was no real conviction in the selling today. Smart traders have stood aside from buying today and allowed the market to fall under its own weight (six days up in a row is quite rare). At this stage, this is a retracement based on technical factors. That could easily change depending on headlines out of Europe. But for now, expect this to be a three/four day event - unless the volume picks up.

INDICATORS:
RSI.9: 57.7. Positive, but falling
MACD Histogram. Above zero. Positive. But falling - a sell signal for short term traders.
MACD . Marginally above zero. Positive.
Stochastic: 85.6. Overbought.
CCI.14: +97.4. Falling below +100. Negative.

The short-term trend is down. The Index closed at 4257.2. Solid support lies around the 4140 area. If that breaks, then much lower levels are likely.

At this stage, I think I'll be putting any ideas of buying on hold.

Redbacka.