ho hmu its wednesday, page-43

Bit late tonight. I went to a performance of King Lear. My favourite quote from the play: "Nothing will come of nothing". Well - nothing much happened on the market today. Of course - the ironies built into that quote are endless. So we'll wait for an interesting outcome.

In Australia:

Twenty Leaders -0.0%
50 Leaders -0.1%
XJO -0.1%
Small Ordinaries -0.5%
Financials -0.1%
Materials -0.5%
Consumer Staples +0.3%

Comment: A narrow range day on volume a little up on average (about 105% of the 20-Day Average). The sector structure is typical of a turn time – weak Small Ords compared to the 50 Leaders, weak Materials compared to Consumer Staples. All put together – the probabilities are to the downside.

Technical Comment on the ASX200:
The XJO finished at 4262.8. Resistance at 4437.4 (in the heavens). Support at 4245.9.
Indicators:
Stochastic: 91.7. Overbought.
RSI: 69.9. Close enough to the overbought level of 70.
MACD Histogram. Above zero. Positive but losing momentum.
MACD: Above zero. Positive.
CCI: +173.2. Very 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 market took a step back today – not surprisingly. At this stage it is still consolidation. A big down day would give a three day reversal pattern. But we might get more consolidation – or, improbably, a big day up. If that happened I think we could be sure that would be the last for a few days.

At this stage, I’m favouring a short term pull back.

Friday in America is the Jobs Report. We may not get much action until then.



Redbacka