Lumpy Rug Wednesday, page-2

ANZ and the RBA dominated traders thinking today.

ANZ disappointed expectations, despite recording very strong profit figures - that was not enough for the bean counters to pull the plug.  ANZ down -2.12%, but it did come in for some intra-day buying, finishing well off its lows.

The ANZ action dominated sentiment in the morning session.  XJO was down heavily.  That took the other banks down as well, although not as much as ANZ.

As usual, the lunch-time session saw some sideways action.  The RBA's decision to hold interest rates steady, although widely expected, seemed to give the market a reason to move upwards in the afternoon session.  The XJO finished down just -0.1%.  

Today's candle is a doji, with a long lower tail showing the intra-day buying that occurred.



The short term trend remains up.  The Index remains above the 5-Day MA.

Here's the chart for Financials X=Property:



Today's candle is a bearish engulfing candle - that's usually reliable.  

XXJ makes up nearly half the XJO.  So a big fall in that Index has a big impact.  But, today, XXJ was down -0.81%, but the broad market index only finished down marginally.  So there was plenty of bullish action elsewhere in the market.

Industrials (XNJ) has been one of the stars in our market in recent weeks, it was up today +0.29%, but today's candle, at long-term resistance, with an exceptionally high RSI of 83.2, suggests some sort of pull-back is due.  Any mug (even me) can look at this chart and say: That's not sustainable!



So, Financials are weak.  Industrials, one of the prime supports of the market in recent times, is looking vulnerable.  One would have to expect some sort of pull-back to occur.

We're in a long term up trend.  And nothing suggests that is likely to end.

Any pull-back is likely to be bought.

Look for support at the 13-Day MA on the XJO, and, if that fails, at the 49-Day MA.

RB.