brother disco stu's shocker - tuesday, page-45

XJO (ASX200) +0.8%
XTL (Twenty Leaders) +0.7%
XFL (Fifty Leaders) +0.8%
XFJ (Financials) +0.3%
XMJ (Materials) +1.3%
Energy +2.7%
XSO (Small Ordinaries) +0.7%

Today stopped the big decline from yesterday, but the market isn?t out of the woods. We need to get a big up day on solid volume. Volume today was marginally better than yesterday and at the 10-Day Average but still below the 50-Day Average. This market still has a lot of work in front of it. Promising today was the action in Energy ? a chronic underperformer. If it can turn around, perhaps the whole market can.

INDICATORS:
RSI.9: 38.7. Needs to get above 50.
MACD Histogram. Below Zero. Negative.
MACD. Below zero. Negative.
Stochastic: 18. Oversold..
CCI.14: -143.24. Oversold
8-DSMA below the 34-DSMA. Negative.

The XJO closed up at 4072.7. Six days ago the market closed down at exactly 4072.7. So the Index is right at resistance.

The short term trend, medium term trend and long term trend are all still down.

Yesterday?s big down move was unconvincing. Last night?s action in America was promising. But ? we don?t have a positive reversal of any trend.

Don?t pre-empt the market.

Good luck
Red