Comments - 29/10/09

Yesterday's sell signal played out today. The general market picture is very weak. Medium term weakness is expected - but expect a bounce tomorrow.

Here are the 50-Leader stats:

Yesterday:

Above 10-Day SMA - 10%
Above 50-Day SMA - 38%
Above 50-Day SMA - 92%

Today:

Above 10-Day SMA - 16%
Above 50-Day SMA - 24%
Above 50-Day SMA - 88%

I'm including yesterday's figures because we have a non-confirmation on the 10-Day SMA line. That is, the figures today are stronger than yesterday.

That suggests that internal strength may not be as weak as the index absolute figures show. Expect a bounce tomorrow.


Stocks from the 50 Leaders making new 20-Day Lows - 24

Stocks from the 50 Leaders making new 20-Day Highs - 2.
(Both were defensive stocks: Sonic Health and Telstra)

The 20-Day New Lows is extraordinarily low - almost half the index.

Expect a bounce tomorrow.