Here's a late night update on today's action. Later than usual,...

Here's a late night update on today's action.  Later than usual, and shorter than usual - I've had a family function to attend.

XJO up (a surprise to me) +0.6% on volume a little above average.



The chart pattern looks like a standard ABCDE Rising Wedge Pattern. RSI is at 77.8. That’s getting too high for comfort. Above 80 and it is into seriously dangerous territory. This has been a great run-up in July. But we’re close to the end. August may not be so strong. (That’s an opinion I voiced in the last Weekly Report last Sunday.)

The weak link in proceedings today was the Mining Index. It finished up just 0.1% after being up much higher at 11 a.m.  I was surprised by the early strength because of the weak Industrial Metals action overnight. Early this morning I didn’t have data for Iron Ore which was up over 1%. That gave some in the Mining Index early strength – but after the first hour – the Index gave back most of its early gains.  


At the time of writing, the GDP figures were out in America – up an annualised 4%. That’s a gung-ho number – much better than expected. The initial reaction in the market in the first 5 minutes was very positive. That’s now dropping off.

The market will now have to wait on the Federal Reserve announcement at 2.30 pm NY time.

See you in the morning.

Redbacka