The big white candle today tells the story. There's not a lot to say. XAO up +2.1%. All 10 S&P Industry Sectors were up, although Telecommunications looked a little weak, up only 0.1%. The next worse performer was Consumer Staples, up almost one percent. The best was Health up 2.6%. (Those who get my email letter know that I've been talking about CSL for some time. I mentioned in yesterday's blog that CSL had become a "buy". So if you bought CSL at the close yesterday, you were up 5.12% today.)The market still doesn't look overbought. Looking at the 50-Leaders Chart, the percent of stocks above the 10-Day Moving Average is still below the Overbought level of 80. And the other two indicators on that chart are a long way from Overbought.
The Daily Slow Stochastic (see middle pane below the XAO chart above) has just nudged 80. That's probably an "add" to holdings sign.
Volume today was a little on the light side - surprising given the big jump up.
About the only other negative I can mention is a subjective one. Going through the individual charts of the 50-Leaders I came away with the impression that quite a few were showing a short-term bearish upward sloping wedge. I haven't quantified anything there - its just an impression that I have after thinking back on the charts. Something to keep in the back of your mind if tomorrow is a big down day.
I doubt that is going to happen. Probably a consolidation day tomorrow to digest the big leap today. Then probably another push up which could make this market overbought.
But - at this stage - the market seems set to test the January highs.
Cheers
Red
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