XJO down moderately -0.52%. Volume was below average.
The range was marginally less than the previous day, but that still qualifies as an inside day. That's usually a sign of indecision.
Volume was below average which surprised me given that CBA, the largest stock in the market, went ex-dividend. That usually provokes a spate of dividend stripping sales. Volume was high in CBA but not enough to overcome the inertia in the market resulting from the closure of the American market last night.
The market remains overbought - and needs some more time in consolidation - or, perhaps a pull back.
The negative divergences which are setting up suggest we'll see some more downside.
CBA fell by much more than its dividend. The dividend was $1.98, but CBA fell by $3.47, or 3.71%. That accounts for around 70% of the fall in the XJO today. The gloss might be coming off the banks.
Here's the CBA Chart:
Several negative divergences on indicators suggested that CBA wouldn't fare well ex-dividend. I've marked just one on the MACD Histogram. It's too early to write CBA off, despite the clear double top on the chart. It has a habit of recovering from ex-dividend events. But we'll have to wait a couple of days to make a call.
ANZ also reported some results today - and fell significantly, down -2.45% Here's the chart:
I won't comment on the chart - I think by now most of these things I put up are self-explanatory.
I have to wonder at people who might have been buying ANZ and CBA in the past few days. The Risk/Reward Ratio based on the technicals just wasn't in their favour.
Technical analysis isn't perfect - nothing is in the stock market. But it can help to put the odds in your favour just a little.
Redbacka
(20min delay)