In Australia:Twenty Leaders -1.3%50 Leaders -1.3%XJO -1.4%Small...

In Australia:

Twenty Leaders -1.3%
50 Leaders -1.3%
XJO -1.4%
Small Ordinaries -1.5%
Financials -0.9%
Materials -2.3%

Comment: The XJO down strongly on volume about average but up strongly from the previous day. Volume on the All Ords was about 103% of the 10-Day Average. Given the size of the drop today, the A/D Ratio was a relatively benign 0.74/1.

Technical Comment on the ASX200:

The XJO finished at 4204.7. Below support of the uptrend line.
Indicators:
Stochastic: 51.6. Negative.
RSI.9 is at 36.4. In the zone where rebounds can occur.
MACD Histogram. Below Zero. Negative.
MACD. Below Zero. Negative.
CCI.14: -95. Negative.

Well, I was disappointed with bears yesterday. They came good today. Today was sooooooo bad, I think we can expect at least an intra-day move up tomorrow.

The current chart shape is remarkably similar to the recent one shown with the two ellipses on the chart. Rarely do patterns keep repeating. Tomorrow may be an intra-day up day, but what happens after that will be important. If that is followed by a big up day, then the retrace is over. But – if the chart forms a bear flag – then we’re in for a test of the important support level of 4180. I think that is the most likely scenario.

4180 remains the key.

In America tonight, if the Dow 30 opens well below the 12880 region, I doubt it won't recover much. (The BTD Mob will stay in Starbucks for the day.) So long as it finishes below that level tonight, then I think we're due for much more down action.

That doesn't negate my suggestion that we might be up intra-day tomorrow. But it will probably be a knee-jerk reaction.

Watch that 4180 level on our market.

Redbacka