XJO down today -0.51%. [IMG] We’re in one of those periods when...

XJO down today -0.51%.



We’re in one of those periods when it is up one day and down the next.

The chart pattern looks like a bear flag – but until it breaks to the downside – it’s an upslanting channel.
So we have to wait.

A break to the upside would be bullish.

This morning I thought we’d get a downside break followed by a bounce.  We got that but the bounce fizzled out at before noon – then it turned into a sideways shuffle.

The big negative sectors today occurred in defensives – the bond proxies – Property and Utilities.  They both fell heavily today, XPJ -1.8% and XUJ -2%.

The RBA came out with its interest rate decision – no change.

I don’t know what XPJ and XUJ were expecting – everybody else thought “no change” was the likely announcement.  Maybe the effect we’re seeing in XUJ and XPJ had nothing to do with the RBA; maybe it was technical selling.  I could make a case for that.

XXJ was one of the positive sectors today (barely) +0.12%:



This could be setting up for a small counter-trend rally.  Indicators are showing positive divergences.  But it would take someone braver than me to take a bullish trade here.