XJO up today +0.54% [IMG] The trend continues up. Indicators are...

XJO up today +0.54%



The trend continues up.  Indicators are overbought, but RSI5 continues to rise into the stratosphere.
When we see a fall in the RSI%, we’ll have a pull-back in place.

Given the strength of this trend, any pull-back is likely to be bought.

Breadth today was weak.  Advances/Declines Ratio was at 0.85%.  Anything below 1 is bearish.
The strong performance today was largely due to an improvement in the banks after ANZ reported.
ANZ +2.35%,  NAB +1.73%, Westpac +1.43%, CBA +1.88%.
XXJ chart:

This looks like a “JUMP ACROSS THE CREEK” bullish reversal in the Financials.

The Index still has plenty of overhead resistance, but when a reversal trend takes place, it is usually unstoppable for some time.

XJO is, of course, not dependent on the Financials.  It counts for a powerful influence, but if other sectors weaken and XXJ strengthens, any pullback is likely to be mild.

Buy the dip.

RB