XJO was flat today +0.03% after falling early in trading. [IMG]...

XJO was flat today +0.03% after falling early in trading.



XJO is in a strong uptrend but is overbought (RSI at 78.9) - so be prepared for a pull-back.

The Bollinger Bands on the short-term Stochastic have tightened - so expect an expansion to the downside in the near future.

Here's the Trend Matrix:

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Index	V.Short Term	Short Term	Medium Term	Intermediate Term	Long Term
1	XJO	long	Long	Long	Long	Flat
2	XTL	Long	Long	Long	Long	Flat
3	XMD	Long	Long	Long	Long	Long
4	XSO	Long	Long	Long	Long	Long
5
6	XMJ	Long	Long	Long	Long	Long
7	XEJ	Long	Long	Long	Long	Long
8	XXJ	Long	Flat	Long	Long	Flat
9	XNJ	Long	Long	Long	Long	Long
10	XDJ	Long	Long	Long	Long	Flat
11	XHJ	Long	Long	Long	Long	Long
12	XPJ	Long	Long	Long	Long	Short
13	XUJ	Long	Long	Long	Flat	Short
14	XSJ	Long	Long	Long	Long	Long
15	XTJ	Short	Flat	Flat	Short	Short
16	XIJ	Long	Long	Long	Long	Long
17	XGD	Long	Long	Flat	Long	Flat

This isn't showing anything unexpected.  Continue to avoid the Telecoms.  Otherwise there's nothing much to fear in this Matrix.

The big news today concerned the quarterly report from CBA.  CBA up +2.65%.  Other bank reports were received negatively but CBA proved otherwise.



It must be remembered that CBA represents about ~10% of the Australian market - so any significant move in CBA is significant for the broad market.

CBA has broken above horizontal resistance and above the 200-Day MA.  Those are bullish events.

Today's market was held back by poor performances by Miners -0.73% and Energy -0.59%.

Ain't it always the way - Financials up, Commodities down?  No - not necessarily - but it happens often in the Australian market.


Get the three of them aligned - and you have bullish conditions.

The A.VIX remains in a condition where the Bollinger Bands have tightened up.  Such tightening suggests a return to volatile conditions in the near future.  That usually means a move to the downside.