rocky mountain thigh wednesday, page-86

XJO (ASX200) -0.1%
XTL (Twenty Leaders) -0.0%
XFL (Fifty Leaders) -0.0%
XFJ (Financials) +0.1%
XMJ (Materials) -0.3%
Energy -0.4%
XSO (Small Ordinaries) -0.2%

Comment: The market finished flat today, but it was a reversal day, down then up, to finish at par. Volume was light. That’s a good sign. The market was down about 1% at 11.00 a.m., then bulls entered the market and pushed it up to the par level around 1.30. From there on it was basically a sideways shuffle. So a certain degree of optimism pervaded the market – but it needs to be proven with a move up on better volume tomorrow.

INDICATORS:
RSI.9: 47. Negative.
MACD Histogram. Below zero. Negative.
MACD . Above zero. Positive.
Stochastic: 66. Falling. Negative..
CCI.14: -5.9. Marginally below zero. This is where the bulls need to come alive and start snorting.

The short-term trend is down. The Index closed at 4190. and sits on the 44-Day Moving Average.. A doji candle sitting at a significant MA support on low volume translates into bullish expectations. It needs to be proved tomorrow.

For the Gold Bugs – here’s a chart of the XGD (Oz Gold Miners):

The Index broke below support today but the Index is also extremely oversold (see RSI, Stochastic and CCI). I think this is setting up for a significant move up. Major support lies at the September lows. If this gets down that far, I think this will be a great upside set-up. Any big up day now should reverse the short term down trend.

Redbacka