hctv presents jerry springer monday, page-44

In Australia:

Twenty Leaders -0.3%
50 Leaders -0.2%
XJO -0.1%
Small Ordinaries +0.8%
Financials -0.0%
Materials -0.2%
Consumer Staples +0.2%

Comment: The market finished flat on relatively heavy volume - about 131% of the 20-Day Average. We don't often see higher relative volume than that. Maybe that figure is partly due to selling on ex-dividend day for Telstra. But, even allowing for that, volume was still in line with the past three days, and, as I noted in my Weekly Report, that was a cluster of high volume days. So today makes the fourth in the cluster. Something is up. And it smells to me like smart money selling.

Breadth was good. But UpVolume was weak - so the good breadth figure looks like hot air ballooning - no substance. The best performing Sector today was Health +2.1%. Once again - a Defensive showing at the top of the list of Best Performers.

Technical Comment on the ASX200:
The XJO finished at 4364.3. Resistance at 4437.4 (in the heavens). Support at 4245.9.
Indicators:
Stochastic: 97.8. Extremely Overbought. Highest reading in the past 200 days - the extent of the chart above.
RSI: 71.8. Above 70 - overbought.
MACD Histogram. Above zero. Positive.
MACD: Above zero. Positive.
CCI: +169.2. Overbought.

The medium term trend is up. The short term trend is up.

The 10-Day EMA is a above the 20-Day EMA. Positive.

The chart is backtesting the lower edge of the rising wedge. Volume was high today. If you read my Week Report yesterday you know I'm bearish. Today confirmed my sentiment. Flat day - high volume - overbought market - in a resistance zone - backtesting a rising wedge. I can't be anything but bearish.

Today's high volume with a flat finish at the top of a trend is indicative of weak hands buying and strong hands selling. Or to put it more bluntly - dumb money buying, smart money selling.

Maybe I'm the dumb one.

And maybe this is just a short term consolidation before the next move up. We'll see.

Redbacka

Redbacka.