The All Ordinaries was up about 30 points (+0.6%) today after being up nearly 50 points early in the day.
Buying today lacked conviction. Volume was low (about equal lowest since traders returned after the Xmas/New Year rest period.)
The 50 Leaders was up +0.8% - higher than the All Ordinaries, which suggests a defensive stance to trading.
The Small Ordinaries was down -0.3% - an unusually low figure on a day when the general market was up.
The XAO closed at 4929.3 today - good support lies around the 4930.
So, today was up a bit - not surprising considering the past two days down. The market is indecisive and favouring a defensive posture - volume down, blue chips up, small caps down.
The 50 Leaders showed little change in the stocks above/below relevant moving averages today. There still seems room for a little move now - but not a lot.
The market is still holding above the mid-October high. Further consolidation between that point and the high of three days ago seems likely before a decisive move is made.
Support and resistance on the daily charts: 4984/4834. That's a range of just 160 points. A break one way or the other from that range may prove decisive for the near term direction of the market. But don't expect anything dramatic to happen in the next couple of days.
Even if downside support at 4834 is broken, there is plenty of support under that level.
Cheers
Red.
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