redbacka's unprecedented times friday, page-90

XJO (ASX200) +0.8%
XTL (Twenty Leaders) + 0.5%
XFL (Fifty Leaders) +0.7%
XFJ (Financials) +0.3%
XMJ (Materials) +0.9%
Energy +0.2%
XSO (Small Ordinaries) +0.9%

All those sectors are leaning the right way with Materials and Small Ordinaries doing the best. Volume today was the lowest in the past six days and the market gave up more than half the early intra-day gains. Not much demand there to keep the market going up.

INDICATORS:

RSI.9: 38.7. It still needs to get above the mid-line and it's not even above 40.
MACD Histogram close to Zero. Neutral.
MACD below the Zero line. Negative.
Stochastic: 46.3. Above its signal line and above 20. Positive. But still hasn't reached its mid-line
CCI.14: -45.6. Above -100. Positive. Hasn't breached its down trend line from early July.

Look at those indicators - they're promising - but now right at the spot you'd expect a retracement to occur. Today's volume and intra-day action wasn't supportive of a further short term move up.

Still no buy signal. The jury is still out on this one.

Some time ago I mentioned that the market might make a W bottom before reverting convincingly to the upside. After today's action, that still looks like the best prognosis.

A break back below 3950 would be very negative.

Good luck
Redb