The market was down a bit today (XAO -0.6%).Basically it was a non-trending day. Several sectors were up (see chart above). The two sectors with the biggest weighting were the Financials and Materials and both were down. But Energy was up.
The market appears to be consolidating after the big rise three days ago. The question now is - Which way will it break?
The pattern in America for months now has been - Bullish Monday, Bearish Thursday. So, probably, tonight in America will be down. The Dow on Wednesday night formed a Doji - so that gives some confirmation that tonight could be weak.
Friday then becomes reset day for America. If this Friday can hold above the low of last Friday, then their market has the opportunity to start a new uptrend with a higher lower and possibly a higher high.
But that is all speculation.
In America look for:
1. A down night tonight.
2. Friday to finish above the low of last Friday.
3. A break above last night's high.
Look for something similar in Australia.
1. A drop down, which mustn't close below 2544.7 (Monday's low on the XAO)
2. Followed by a move up to close above yesterday's high of 4682.6 (yesterday's high on the XAO).
If the recent lows in America and Australia are broken to the down-side. Then all bullish bets are off.
Cheers
Red
Thanks again for your continued excellent commentary.
ReplyDeleteYou might want to change the text in 1. A drop down, which mustn't close...2544.7 - should be 4544.7 :)