XJO down modestly -0.26%. [IMG] We had a narrow range day held...

XJO down modestly -0.26%.


We had a narrow range day held up by a minor horizontal support level - the pivot from 27 January - just one month ago.

Indicators continue to look ominous.

If we break lower, the first port of call looks like the 65-Day MA.  And then the major horizontal support level marked on the chart.

A fall down to that level should make for a serious "buy" call.

Tuesday night will provide a look into Trump's taxation plans.  The market reaction may be the catalyst for a serious move.  Up or Down?  Let the market do the talking.

Materials Index

Materials has been the backbone of the Australian market in 2016.



XMJ has been in a strong up trend channel.  It is now down at the lower end of Standard Error Channel.
Stochastic is down into the "buy" zone.

On the chart, today's candle is a nice little hammer right on the lower edge of the Standard Error Channel.

The chances of a bounce here are very strong, and that would be a plus for our market.
I'm leaning to the upside in the next few days.

RB.