yotta's run, run runaway thursday, page-40

In Australia:

Twenty Leaders +0.8%
50 Leaders +0.7 %
XJO +0.8%
Small Ordinaries +0.9%
Financials +0.8%
Materials +0.8%

Comment: The final figure on the market today (XJO) was quite strong, up 0.8%. That hides a little twist in that the market basically went sideways from 1.00 p.m. till 4.00 p.m. and then surged in the after market auction after the retail traders were off the scene. I never know what to make of such after market surges. I'm a bit suspicious of such moves. But - I've never been able to work out their significance.

Volume was about the same as yesterday (down slightly). Breadth was solid without being spectacular. Telecommunications Sector was the best performer. Health was equal second best. So some defensives were quite prominent today. That's just a small cloud over the quality of an otherwise strong day.

Technical Comment on the ASX200:
The XJO finished at 4280.5. S/R: 4220/4310. Only 30 points below resistance.
Indicators:
Stochastic: 24.9. Below its signal line and not yet oversold. Negative.
RSI.9 is at 46.3. Negative. Below 50 but rising.
MACD Histogram. Below Zero. Negative.
MACD. Marginally above Zero. Neutral.
CCI.14: -78.4. Below Zero. Negative. But bouncing off the -100 area.
Indicators still have room to move to the downside. So more selling can be expected, but after today's solid up day, the direction remains to be decided.

Yesterday I said I thought this action would see two legs down. We've had one leg down and now the bounce is in progress. A move back above 4310 would negate that scenario. If we fall back away from 4310, then the scenario still has validity.

Let’s see what tomorrow brings.

At this stage, the short term trend is down. The long term trend remains up.

Redbacka