No Socks Tuesday, page-2

XJO up modestly +0.36% after being up much higher soon after the opening:



The first hour saw a significant move to the upside, but it was all down-hill from there.

In the above chart we can see that resistance for the past three days has been at 6110 (round figures).  We need to see a break above that for this bull rally to continue.

The low of the past two days has been close to 6060.

That provides a tight band of just 50 points for the next movement.

Indicators have turned down.  The upward sloping long-term stochastic suggests that any pull-back is likely to be bought.

The big blue resistance line on the chart at 6136 looks a likely target for this upside move.  That's not far away.

The three critical sectors for the Australian market are Financials (XXJ), Miners (XMM) and Energy (XEJ).  Here are the three charts:

XXJ



Plenty of selling occurred in XXJ today.  It finished near the lows of the day but sitting on support.

XMM



Miners had a strong day up +1.16%.  It is now sitting at major resistance.  Indicators are showing negative divergences, so the next move is probably down.

XEJ



XEJ was up strongly today +0.78% and is sitting at resistance.  Stochastic is showing a tight squeeze which suggests the next move will be down.

Where does that leave us?  It all depends on Financials.  (XXJ).

The strong sectors in our market (Resources) are looking at a pull-back.

XXJ is in the balance.  A strong move to the upside - and our market continues to prosper.

RB