upthrust tuesday, page-95

In Australia today:

Twenty Leaders -1%
50 Leaders -1%
XJO -1%
XAO (All Ords) -1%
Small Ordinaries +0.8%
Financials (ex Property Trusts) -0.6%
Materials -1.2%
Consumer Staples -1.4%
Energy -0.9%
Health -0.5%
Telecoms -0.4%
Consumer Discretionary -1.4%

Comment: A strong day on heavy volume. 20-Day Relative Volume was 116%. That’s high, but not as high as yesterday. From a bearish perspective, that's keeping the pressure on, but not looking like a washout.. We’ve now seven days in a row that volume on the XAO has been more than 1billion. Breadth as measured by the XSO wasn't too bad, relatively, but the Advance/Decline Ratio was in line with a strong down day.

Financials were down heavily early on, but recovered a lot of that ground later in the day. (See below.)


Technical Comment on the XJO:
The XJO finished at 5003.6. Old support/resistance: 4981.43. Still a little above support. Last ditch for bulls..
Indicators
RSI9: 52.8. In a zone where reversals can occur (if we’re in a bear market).
MACD Histogram. Below zero. Negative.
MACD: Below zero. Negative.
Stochastic: 62.7. Negative.
CCI: -0.89. Marginally below zero. Negative
ADX: 55.6. Probably needs to fall below 40 to be sure this has changed to a bear.
Momentum: 32.3. Probably needs to break below zero to signal a trend change.

At this stage, oblique support has broken to the down side. Horizontal support still holds. The market is at a fulcrum point. For the bulls to have an edge they have to push this up above yesterday's high. I think last Thursday's big down day did a lot of technical damage to this market. The odds lie to the downside.

I showed yesterday a chart for the Financials, which has been leading this charge up. XXJ did see some buying off support today. (See circled candle). So bulls are still alive and kicking. The afternoon session did, however, lack conviction. Bears need to break support.

Redbacka