monday trading, page-2

The All Ordinaries is testing resistance at the psychological barrier of 6000; well past its target of 5800 [5300 + (5300-4800)] and above the upper border of the trend channel (drawn at 2 standard deviations around a linear regression line). Probability of a secondary correction is increasing. The sharp reversal on Twiggs Money Flow (21-day) over the past few days indicates sizeable profit-taking. The rally (of the last 8 months) is too extended for this to be a good time to enter.