Ann: Second Drilling Programme Commences at Elsie, page-9

re: Ann: Second Drilling Programme Commences ... SSC's advance from here is also obviously very dependent on the equity markets state of risk aversion. It looks like as usual, the smaller cap. stocks are lagging the large cap stocks in the recovery.....

redbacka summed up the market very well yesterday on the XJO thread. The code for the Small Ords is XSO.
Post #: 7350059

"The health of the market is dependent on health in the Small Ords. The big blue chips can carry the market higher – but only for so long if the rally is not broad based.

The Mansfield Relative Strength Indicator which compares the Small Ords to the XJO, still languishes at a low level. The chart line has been going sideways, however, since late September; I.e., the Small Ords has been performing more or less on a par with the ASX200.

Notice that the XSO still hasn’t broken above August/September highs, while the XJO has. That negative divergence is a concern.

We need to see the Small Ords outperform the XJO to be confident of a return to bullish conditions."


So, although the blue chips have advanced, the smaller cap. stocks are lagging. I guess one would expect that to be the case as it takes longer for confidence to return to riskiest assets.