This post is a little late today. After a day of looking after two quite sick grand-children, I then had to face up to watching the State of Origin Match tonight. (What a chore. :) It really is hard work watching a Queensland side demolish NSW - for the fifth year in succession.)
So analysis took a back seat for a while.
The general market (XAO) had a solid day up today +1.2%. Advance/Decline Ratio was 1.9. UpVol/DownVol Ratio was a strong 3.7. Too strong? Maybe - expect a down day tomorrow.
Apart from that I can't see much reason for this market to slow down yet. Well, the contrarian in me is always looking for reasons for a market to reverse. Consider the following:
- the XAO is now at a 20-Day high. That's often a turning point.
- The 50-Leaders now has a reading of 94% of stocks above the 10-Day MA. That's too high on a historical basis.
- The Slow Stochastic is overbought (over 80).
- Volume has been dropping off as the market has risen suggesting a lack of conviction by investors in this rise.
On the other hand, no serious divergence from price has occurred on the MACD Histogram or the RSI. That usual occurs before a medium term downturn.
So we may be looking at a couple of days consolidation. Then we can re-assess the situation.
Cheers
Red
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