mitta's - positioning for a bang thursday, page-40

In Australia:

Twenty Leaders +0.1%
50 Leaders +0.1%
XJO +0.2%
Small Ordinaries -0.5%
Financials +0.0%
Materials +1.1%
Consumer Staples +0.4%

Comment: A second narrow range day in a row – this time on very high volume (126% of the 20 -Day Average). That’s the sort of day you expect to see at a turn. But market structure doesn’t support that idea – breadth was good and Materials outperformed the Consumer Staples. The two worst sectors were Health and Telecoms, both Defensive Sectors. Dunno where all that leaves us. In limbo?

Technical Comment on the ASX200:
The XJO finished at 4269.5. Resistance at 4437.4 (in the heavens). Support at 4245.9.
Indicators:
Stochastic: 90.5. Overbought.
RSI: 70.8. Overought.
MACD Histogram. Above zero. Positive but losing momentum.
MACD: Above zero. Positive.
CCI: +119.6. Overbought and losing momentum.

The medium term trend is up. The short term trend is up. The 10-Day EMA is above the 20-Day EMA. Positive.

The market was grinding higher today but fell after 3.00 p.m.

I still wouldn’t be buying this market the way it is going.

Tonight we get the ECB meeting in Europe, then Friday in America is the Jobs Report.

After two narrow range days we can expect some fireworks. Any major rise would, I believe, be sold into by the “smart money”. But maybe I’m just dumb.

Redbacka