big news - thursday, page-12

Above is a Candle Stick Chart for the XJO.

In Australia today:

50 Leaders -0.2%
XJO -0.1%
Materials +0.2%
Energy +0.4%
Financials x-Property -0.9%
Small Ordinaries +0.4%
Gold Miners -2.1%
Mid-Cap 50 +0.6%

Today was a narrow range day on high volume. The XJO headed south at the outset, had a good middle session then gave up some of that to finish marginally lower on the day. Sector action was interesting. The biggie, Financials, was down heavily, but a lot of the defensives did quite well. The Mid-Caps finished up relatively strongly and, despite a big fall in the Gold Miners, the Small-Caps also did well. It’s difficult to see how our market can withstand an assault on the Financials, but much of the rest of the market is looking quite healthy. There’s an old cliche, It’s not a stock market, it’s a market of stocks. Looking for individual stocks doing well seems sensible – but the Four Big Banks don’t look likely to qualify.

Today was the last day of the month, so that might explain the relatively good outcome today where some were expecting a bigger down day. (I did.)

Technical Comment on the XJO (closed at 5430.9):

Indicators

RSI9: 71.3. Overbought.
MACD Histogram. Above zero. Positive. But falling. Momentum is weakening.
MACD: Above zero. Positive.
Stochastic: 89. Overbought and below its signal line. Negative.
CCI.14: +83.5. Falling below +100. Negative.

I’ve used a Heiken-Ashi chart today. Today’s HA Candle is a spinner – which is a reversal indicator. That’s not highly reliable. We still need to see a big negative candle to confirm a top in this rally, i.e., a big dark candle on the H-A.

Redbacka