haspete's - another grand on the dow thursday, page-64

In Australia:

Twenty Leaders +0.0%
50 Leaders -0.0 %
XJO -0.1%
Small Ordinaries -0.5%
Financials +0.1%
Materials -0.7%
Consumer Discretionary -0.4%
Industrials -0.8%
Energy -1%
Telecoms +0.6%
Consumer Staples +0.7%
Health +1.8%
Utilities +0.7
Comment: Looking at the major market indices, the market was relatively flat. But that hides so much. Defensives were strong (Health, Consumer Staples, Utilities, Telecoms) while all other sectors with the exception of Financials were weak. Financials were flat. Once again Small Ords underperformed the Fifty Leaders by a wide margin. For the second day in a row, there is a clear trend for big market participants to rotate into Defensive Sectors. (I've left out Information Technology which is inconsequentially small and apt to erratic behaviour.)

Technical Comment on the ASX200:

The XJO finished at 4337.9. Between S/R: 4310/4365 (round figures).
Indicators:
Stochastic: 95. Overbought.
RSI.9 is at 66.3. Positive. Close to 70 – caution.
MACD Histogram. Above Zero. Positive.
MACD. Above Zero. Positive.
CCI.14: +192.7. Around the +200 level is the caution level.
A narrow range day today, on slightly above average volume. Given the internal market structure (sector activity) over the past two days, I can’t help but think that this is strong hands selling out to weak hands. I’d like to think otherwise. One of my favoured indicators (the 15MA/150MA crossover) has gone positive. It’s hard to go against such a signal, but the internal structure of the market suggests caution.

XJO Support at 4310 is not far away. Just 38 points. While that holds, I have to assume the bullish breakout is valid. A break below 4310, given the internal structure of the market, would be very bearish.

Finally, just to add to the bearish tone - the On Balance Volume chart is nowhere near a breakout. This is an oldie-but-a-goodie, rarely looked at these days. Until the breakout is confirmed by the OBV, some doubt must be cast on the validity of the breakout.

Redbacka