XJO down -1.03% this week.STW DAILY CHART - (STW is a tracking...

XJO down -1.03% this week.

STW DAILY CHART - (STW is a tracking ETF for the XJO)

The ASX saw the expe3cted pull-back this week from its small consolidation zone. Then on Friday, in response to action on the American market, the chart kicked up sharply with a big increase in volume. That gives the chart a Very Short Term Bullish Bias. But the Medium Term remains neutral, with two blue Supertrend Lines and one Yellow Line (two bearish and one bullish). This may mean we are seeing a trend change - or not. We have to wait and see which way the cookie crumbles.

Action in the American market on Friday night was very bullish with the SP500 going on to new all time highs. That influence could see the medium term in Australia to bullish. Wait and see.

Daily Chart for SP500.

The Chart above is a Candle Volume Chart with overlays of the Volume Profile (left-hand side of the chart)

SP500 Friday's action took it above horizontal resistance where it had languished for over a month - just sliding sideways. Usually, the longer a consolidation, the more confident we can be if the consolidation breaks to the upside. That's the situation in this case. As well, the break to the upside was accompanied by solid volume. The width of Friday's candle is quite wide compared to recent candles, so volume increased.

All of that says we can be confident that the current break is the real deal.

Sector Performance.

The above chart shows the improvement of Sectors (plus Gold Miners and Composite Bonds) compared to the XJO. XJO is the reference point, so it shows as zero on the chart.

The two most improved sectors over the past 52 Days (using the Mansfield Relative Strength Index) are Information Technology (XIJ) and Consumer Discretionary (XDJ).

The strongest ASX100 stock in XDJ is JBH. JBH is one of the strongest stocks in the ASX100 with a rating of 1.07. Beating that on the Leagues Table is AWC - rating 1.66

Other strong stocks worth looking at are: JB HI FI (JBH) rating 1.07, James Hardie (JHX), rating 0.83, Whitehaven (WHC) 0.81, Yancoal (YAN) 0.85, Pro Medicus (PME) 0.73.

Do your own research on these stocks. They are not necessarily recommendations - just Stocks woth a look.

Good luck