wild card wednesday., page-57

In Australia:

XJO +0.1%
Twenty Leaders -0.1%
50 Leaders -0.0%
Financials -0.7%
Materials +1.1%
Small Ordinaries +0.3%

Comment: A narrow range day on heavy volume – volume was the heaviest in 16 trading days. That comes after a wide range day yesterday on heavy volume – the heaviest in 15 days. Smells like a top to me.

Disharmony exists between Financials and Materials, the two biggest sectors in the market. Financials down solidly, Materials up solidly. Disharmony like this usually gets resolved soon - and its usually on the weaker side. Another suggestion that a top is in.

Technical Comment on the ASX200:

The XJO finished at 4217.9. Sitting above the 15-Day MA and below the 150-Day Moving Average.
150-Day MA is at 4265.1. Not far away.
Indicators:
Stochastic: 86.8. Overbought.
RSI.9 is at 59.7. Marginally above 50. Neutral. Negative divergence from price.
MACD Histogram. Above Zero. Positive.
MACD. Above Zero. Positive.
CCI.14: +116.7. Overbought

The CCI and Stochastic are overbought. Volume and index action suggest at least a short term top. Inter-sector disharmony suggests a short term top is in. A down day tomorrow would confirm.

The medium term trend is sideways. The short term trend is up.

Respect the trend.

Redbacka