Vanilla XJO Thread, page-46

XJO down today -1.23%.

Today was an impulse move to the downside which puts the current up-trend in doubt. We still haven't had a definitive break below the most recent low, so until that happens, the trend remains up.

RSI has dipped below its mid-line, but MACD Histogram remains above its mid-line. That's an indecisive state.

Using Ichimoku, we can see that the Index has broken below its Kumo Cloud (blue cloud) which is bearish.

Tenkan Sen (light blue line) remains below the Kijun Sen (black line) which is bearish.

The last three days of last week formed a pivot top (big up candle, followed by small bodied candle, followed by larger down candle).
Whenever you see such a formation it almost always signals a change in the short-term trend.

We now need to see a short-term pivot bottom to return to the upside.

Today's sector results were grim except for resources. Energy was the clear winner, up +1.82%. Utilities tagged along with Energy (as usual), up +0.88%. Golf Mines (a sub-index of Materials) was up. +0.52%)

Materials was only down -0.21%.

Interest rate sensitive sectors fell heavily, Technology -3.35%. Financials -2.08%. Discretionary -1.93%. Real Estate -1.74%. Those falls were in response to rises in U.S. interest rates after Friday's U.S. block-buster jobs report.

The ASX's RBA Interest Rate Tracker dipped a little today, down from 78% to 73%, i.e., it is suggesting a 73% chance of an interest rate cut by the RBA at its February meeeting. That remains a strong indication that rates will be cut in February.

In early overseas trading, Euro STOXX600 is down -0.67%. That's a heavy fall but nothing like the magnitude of the XJO today.

U.S. Futures: Dow Jones -0.27%. Nasdaq -0.83%.

Overnight ASX Futures in early trading are down just -0.07%.

Take care.