Market Comments. 7/6/2010

Today was a remarkable day. The AdvancingVolume/DecliningVolume ratio on the Ozzie market was just 0.1. That means that 90% of volume went into declining issues. That sort of ratio is seen regularly on the American market, but not on the Australian market. I only have statistics going back one year, but that is the lowest reading in the past year.

Today's volume was low. )Volume today was 1160M shares compared to a 50-day average of 1437M shares.)

On a low AV/DV day, I would expect volume to be above average. But not today.

What does it mean?

It could well suggest that we saw an intermediate low today - or we are very close to one.

Given seasonal factors, I'm loath to make such a suggestion - but that's the way the evidence points.

Cheers

Red