Assistance Dog Thursday, page-2

Wednesday Evening Liqueurs. 3 August, 2016.

XJO down heavily today -1.35% following on from the previous day's -0.84% decline. So we have an acceleration to the downside.



That brings the index to the 20-Day MA, which might provide some support. That is more likely to be a pause in play rather than a halt in the pull-back.

All indicators have now fallen below the mid-line of their Bollinger Bands. Until we see a move back above those mid-lines, its probably best to adopt a cautious tone.

The big hitter (for the bears) today was the Financial Sector, down -1.99%. Here's a Heiken-Ashi Chart for XFJ:



Rarely do we get a big blue candle like we see today - and can say - well, that's it, it will go up from here. Expect more downside in the Financials, the biggest sector in our market.

Relatively good today was the Materials Sector, down just -0.12%. That performance was largely due to a good report from Rio which spilled over to other sections of the mining stocks.



Materials often act in a contrary fashion to Financials, providing a little balance into the Australian market. But, if we are going to see more pull-back in the general market it is unlikely that Materials will be immune.

At this stage, I think we'll see a quieter day tomorrow, followed by more selling in the near future. Then, we might have a medium term rally. Don't expect it to last. I think that one will be the one to sell into.

RB.