Australia rebounds. Tuesday Evening Cup of Tea. 30 June, 2015....

Australia rebounds. Tuesday Evening Cup of Tea. 30 June, 2015.



Yes - it's time to sit back and have a cup of tea and consider the landscape.

XJO up +0.67%. Here's the chart:



The Financial Media Gods were praying for the market to go down, down, down. (Good for stories. Good for Fear. Good to keep readers reading. Good for advertising revenues.)

More rational minds said - NAH. And the XJO went up for a solid gain today. And on above average volume - about 120% of the 20-Day Average. That's a big, big vote of confidence.

When we see a reversal day like today, in the midst of a "financial crisis", on big volume - that's usually a deal breaker.

Are we out of the woods? Well - we can see a glimmer of light ahead. But the Index needs to have follow through buying and rise above the R/S Line on the chart.

As I mentioned yesterday, Indicators are showing positive divergences, that suggest we'll get more upside.
This is stil precarious, but another day of solid buying should put it beyond doubt.

Just remember - we have a bearish chart. It has a lot of work to do before we can say it is bullish.

Here's the Monthly XJO Chart I promised in the Weekly Report:



The Monthly Chart is looking more and more bearish. It has broken below the 10-Month MA. Several indicators are in bearish territory.

This month's candle hit the 20-Month MA and bounced a little. But not much.

A monthly close below the 20-Month MA would be very bearish. That's possible in the next month.

A break by the 10-Month MA below the 20-Month MA would suggest we're in a secular bear market. That's not imminent - just keep in mind.

The next couple of weeks have a good record for bullish action. The second half of July could be crucial.

RB.