tough work wednesday , page-20

Costa - Maybe you should introduce your F-i-L to Maxi, as well as the BD. I reckon they'd get on like a house on fire.

In Australia:

Twenty Leaders +0.1%
50 Leaders +0.0%
XJO +0.2%
XAO (All Ords) +0.2%
Small Ordinaries +1.1%
Financials -0.3%
Materials +0.5%
Consumer Staples +0.1%
Energy +1.55
Health +2%
Telecoms -1.3%
Consumer Discretionary +0.9%

Comment: A reversal day (up/down) on high volume. Highest 20-Day RV since 1 Nov. Breadth was good. I think that’s a false signal. UpVol/DownVol was 49%, a tick below par. Highly unusual on a positive breadth day. That’s usually a bearish sign.

Technical Comment on the ASX200:
The XJO finished at 4583.8. S/R:4530/4575.7.
Indicators:
Stochastic: 93.8. Overbought. Above its signal line.
RSI: 74.3. Very Overbought.
MACD Histogram. Below zero. Negative.
MACD: Above zero. Positive.
CCI: +127. Overbought. Negative divergence.

Today was the second reversal day out of three. Volume was very high. UpVol/DownVol was below par. The chart is marginally above resistance. The bears stepped up to the mark today and sent the Index backwards after early strength. That looks like the top of this run-up. A down day is needed to confirm.

Any pullback could be muted. We’ll just have to see how it goes. We often get a state of mild exuberance early in December – holding out the possibility of a Santa rally. The early buyers then get sent packing, they sell out and nervousness prevails. Then, when least expected, the market takes off again. Let’s see how it goes this year.

FOMC tonight in America. That’s usually bullish. Last night in America didn’t look flash, particularly the Transports. So I’ll be surprised if the FOMC meets with the bullish expectation.

Redbacka