bill3173 - passion in your xjo posts tuesday, page-58

In Australia:

XJO -0.5%
Twenty Leaders -0.6%
50 Leaders -0.6%
Financials -0.8%
Materials -0.9%
Small Ordinaries -0.5%

Comment: The RBA failed to deliver on expectations today, and the market tanked – but not too badly. Volume was up a bit on yesterday – but not too much of an increase. (After all, yesterday was “Low Volume Monday”). The Small Ords was down in line with the XJO – not too bad considering the Materials was down -0.9%. Advance/Decline Ratio came in at 1.2. That’s mildly bullish. So, that’s not too much pessimism in the market.

Technical Comment on the ASX200:

The XJO finished at 4296. Sitting above the 15-Day MA and at the 150-Day Moving Average.
Indicators:
Stochastic: 72. Above its signal line but falling. Possible strong negative
divergence set up.
RSI.9 is at 57.8. Positive. Possible strong negative divergence set up.
MACD Histogram. Marginally below Zero. Neutral.
MACD. Above Zero. Positive. Close to breaking the up trend line from
November.
CCI.14: +96.6. Back below +100. Possible strong negative divergence set
up.

Most indicators are setting up potential negative divergences from price.

The chart is now above the 15-Day Moving Average but below the nearby high of 27 January. That’s now the second time it’s hit that level and retreated. Third time the charm?

I haven’t a clue about tomorrow. Given that the market was disappointed by the RBA – but didn’t fall much – it could be up. Let’s see what happens overseas tonight.

Major resistance still beckons at 4350 – until that is broken to the upside I think this market is still vulnerable to serious pull-backs.

The short term trend and the medium term trend remain up. DFTT. (Don't Fight The Trend).

Redbacka