Bad News - Tuesday, page-2

XJO up modestly +0.23%.  Westpac reported today, and the market didn't like it.  WBC down -3.08%.  Other banks went down in  sympathy.  That ruined what was potentially a great day.  Miners ended up 2.65%.  Health up +1.%.  Energy up +0.64%.  Consumer Staples up +1.49% and XSJ had a nice break-out above recent resistance.  XDJ +1.35%.  And so on.

Here's the chart for XJO:



Despite two days on the upside, the chart is still not looking healthy.  And we can blame the Financials for that.

Here's today's chart for WBC:



Westpac is now down >12% since its recent highs.  That's now into "official" correction territory.   After a 10% decline, blue chips often rebound.

The stock went close to hitting horizontal support today and bounced quite strongly, nearly 2%.  Maybe it's a dead cat bounce, but the poor results today seem to have been well anticipated by the market given previous falls in the stock.  Volume was high today and the stock was under buying pressure.  Usually, this is a sign that the weak hands are selling to the strong hands.  That doesn't necessarily mean we have a bottom - but one may not be far away.  A rebound in Westpac and the other banks in the next couple of days would be very bullish given today's action.

RB.