Grenache Friday, page-3

Let's take a more granular look at the make-up of the XJO.

Currently the XJO is a little above the 200-Day MA that I use.

Below are charts for each of the Sectors in the XJO:

XDJ - above the 200-Day MA:


XSJ above the 200-Day MA:


XEJ below the 200-Day MA:



XXJ IFinancials ex-Property) below the 200-Day MA:



XHJ above the 200-Day MA:



XNJ below the 200-Day MA:



XIJ above the 200-Day MA:



XMJ above the 200-Day MA:



XPJ below the 200-Day MA:



XTJ below the 200-Day MA:



XUJ below the 200-Day MA:




Seven sectors are below their 200-Day MAs.  Five  Sectors are above their 200-Day MAs.

Discounting the XIJ which is miniscule.  We have a 7:4 ratio.

The positive sectors are:  Consumer Discretionary, Consumer Staples, Health and Materials.

Health is only just above the 200-Day MA.

XDJ, XSJ and XMJ are doing very well and are the sectors keeping our market afloat.

If the Reserve Bank doesn't keep dropping interest rates, the outlook for XDJ and XSJ would become more pessimistic.  If the RBA lifted interest rates, those two sectors would look sick.

Let's continue to hope that China will keep buying our miners.

RB.