In Australia:XJO +0.1%Twenty Leaders +0.1%50 Leaders...

In Australia:

XJO +0.1%
Twenty Leaders +0.1%
50 Leaders +0.0%
Financials -0.1%
Materials +0.1%
Small Ordinaries +0.2%

Comment: A flat day, on average volume (101.7% of the 5-Day Average). Today’s action was typical of directionless trading. Down a bit, then up a bit, then down to finish flat. Not even Rudd could move the markets today. He might think he can walk on water but he can’t move markets.

Technical Comment on the ASX200:

The XJO finished at 4293.1. The chart is hovering just above the nexus formed by 9/18 and 150-Day Moving Average.
Indicators:
Stochastic: 77.5. Above its signal line. Positive.
RSI.9 is at 58.6. Above 50. Positive.
MACD Histogram. Above Zero. Positive.
MACD. Marginally below Zero. Neutral.
CCI.14: +94.2. Above zero and rising. Positive.

You have to love Technical Analysis. Here we are, once again at significant resistance – and, lo and behold, the market stalls. What’s it going to do? No idea. But we know that a break above or a drop down here should be significant. The indicators have more room to move to the upside. But the zone of resistance reaches up to 4350 (round figures). That will be a hard nut to crack.

The market has now had four days up in a row. We have to go back to November/December to see better than that. Recent history hasn’t been strong (in contrast to the U.S. and major European indices).

The next couple of days could be interesting.

Redbacka