The market had a nice bounce today. Up 1.2%. It remains within the bounds of the trading range: in rough figures 4500-4300. Until we see a breach one way or the other of that band, I'd keep my hands in my pockets.
The market, although up, had, on balance, a defensive posture.
- 50-Leaders +1.4%,
- XAO (All Ordinaries) +1.2%,
- XSO (Small Ordinaries) +0.9%
The two best performing S&P Industry Sectors were both Defensives:
- Telecoms +2%
- Utilities +1.7%
That tells us that the "smart" money (institutions) are still playing it very cautiously.
The indicators on the XAO chart show a mixed picture.
- 9/18 SMA has had a positive crossover, but that is negated by the fact that the cross-over has occurred while the chart is below the two SMAs.
- the MACD is positive (above its signal line) but below the Zero line.
- the RSI is heading up but still below the mid-line
- the Slow Stochastic is still below its signal line and heading down.
On balance - that's a stand aside market - no clear direction.
Let's wait for clear direction.
Cheers
Red
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