trading inside wednesday, page-124

In Australia:

Twenty Leaders +0.8%
50 Leaders +0.9%
XJO +0.9%
Small Ordinaries +1.2%
Financials +1%
Materials +1.1%

Comment: Another wide range up day on good volume. Volume was up a bit on yesterday at 113% of the 10-Day Average. That’s creeping up, but nothing to be concerned about.. I talked about the sectoral structure of the market yesterday. I was concerned that Defensives were strong on an up day. Those concerns haven’t gone away – but more on that later.

Technical Comment on the ASX200:

The XJO finished at 4287.2. Below major resistance around 4310 (round figures.)
Indicators:
Stochastic: 57.2. Positive.
RSI.9 is at 59. Positive.
MACD Histogram. Above Zero. Positive.
MACD. Below Zero. Negative.
CCI.14: +56.3. Positive.
All that looks rosy – the Index seems to have more upside available to it.

Now let’s have a look at some intra-day charts of sectors.

First, the ASX200

After the initial rise, the benchmark index basically went sideways.

Industrials has been one of the best performing sectors for the past two months. Here's the intra-day chart today.

After the initial rise, the market sold off steadily most of the day, with a slight kick in the after-market auction. Nothing drastic, but clear.

Now - Consumer Staples:

After 11 o'clock, a clear move up.

Utilities:

Clear move to the upside.

Health:

More volatilie than the others, but the afternoon session, when institutional players ("smart money") tend to be most active, the Health Sector had a strong move to the upside.



I think the picture is clear. While the market drifted sideways today (after the opening) Defensives were being accumulated especially in the afternoon when the "smart money" gets active.

That doesn't seem bull friendly to me. It doesn't mean we'll be down tomorrow. But a definite defensive posture is being adopted by big players as this bull rally progresses. Unusual. And concerning. They're rarely wrong.

Redbacka