Technical Comment on the XJO (closed at 5295, down -21%...

Technical Comment on the XJO (closed at 5295, down -21% ):

Indicators

RSI9: 51.8. Positive.
MACD Histogram. Marginally below zero. Neutral.
MACD: Above zero (just). Positive.
Stochastic: 54.5. Above its signal line. Positive.
CCI.14: -25.6. Negative. Bulls want this above the zero line.

On Monday, our market fluffed around – volume was a bit below average. In the morning session, the bears took it down and they looked to be in control, then the bulls took it back up in the afternoon – but couldn’t get it into positive territory. There was buying pressure. But, given the U.S. has a Monday holiday, it just looks like the usual swings and roundabouts being played by traders.

The index remains below the restraining line of the down trend I’ve marked – but it did, last week, move strongly off the 40-Day Moving Average. So – it’s between a rock and a hard place.

Last night’s Europe action also showed fluffing about – slightly negative results – but no real direction. The FTSE EuroTop100 was down -0.03%. That’s about as flat as it can be – and it was a narrow range day. E100 remains overbought – more consolidation or a move down is most likely. That might affect our immediate future. Over the past two days the Ozzie market has yo-yo-ed - up and down, up and down. Maybe that should be - down and up, down and up. That's the way a yo-yo goes, if my understanding of yo-yos means anything :) I doubt we'll see much change in the school yard game today.

Redbacka