XJO (ASX200) +2%XTL (Twenty Leaders) +2.2%XFL (Fifty Leaders)...

XJO (ASX200) +2%
XTL (Twenty Leaders) +2.2%
XFL (Fifty Leaders) +2.2%
XFJ (Financials) +1.8%
XMJ (Materials) +3%
Energy +2.2%
XSO (Small Ordinaries) +1.5%

Comment: A big move up through resistance at 4140 on relatively heavy volume. AdvancingVolume/DecliningVolume Ratio was very high at 6. A similar reading occurred in late December. These are bullish readings. Sometimes the market goes for many months without showing such strong readings. Having said that, very short term, they suggest the market needs to take a breather. Tomorrow is likely to be down – or at best, a narrow range up day. If it is up tomorrow, then I’d expect the next day to be down. But – the momentum behind this move is very strong. The biggest threat, short term, is the overseas markets, particularly Europe, which are looking toppy.

INDICATORS:
RSI.9: 57.1. Above 50. Positive
MACD Histogram. Above zero. Positive.
MACD . Below zero. Negative. (But rising.)
Stochastic: 34.8. Rising above 20. Positive.
CCI.14: +76.5. Positive.

The Indicators have given simple buy signals. The double bottom is bullish.

Next target looks like the 150-Day Moving Average. It’s be nice to see that crumble – but let’s see what happens when (if) it gets there.

Redbacka