Credit Card - Tuesday, page-2

Flat Day. Monday Evening Liqueurs. 19 October, 2015.

XJO flat (+0.03%) on below average volume. That's not unusual for a Monday.



Today's narrow range doji candle hints at weakness. That is confirmed by breadth figures A/D Ratio 46.1%. That's not drastic but it also suggests at a hint of weakness. Given that this run-up has been quite strong we should be expected a pause in the upside push.

Here's the Daily Sector Performance Chart:



In the 10 S&P Sectors, Telecoms fell the most -2.4%. I don't know what is driving down the price of the Telecom Sector (read TLS). For a couple of years it was the darling of the dividend chasers, now it's a pariah.

Here's the TLS chart:



This looks to me like the action of some well resourced and knowledgeable shorters. They can disappear as quickly as an early morning mist when the sun comes up in Brisbane.

This indicators on this chart are reaching to extreme downside levels - and its those sorts of levels which often cause a reversion to the upside. Maybe I'm wrong - but this is looking ripe for a short-covering rally.
The stakes winner today was Financials. That was helped by Westpac coming back after a three-day trading halt. So maybe we shouldn't be too impressed by that figure. Westpac +2.96%. While Westpac was off-line, CBA, for example, was up >4%. So there was probably an element in catch-up for Westpac today. CBA down +0.16% today.

Here's the CBA Chart:



CBA is at the top of its Two-Month trading range. Money Flow Index is very overbought. We have a negative divergence on the Accumulation/Distribution Index. This suggests that CBA is likely to pull-back in the near future.

If it is a litmus test for the broad market, then we might see some downside in the next few days.
I don't expect that to be particularly severe.

RB.