The general market (ASX200 - XJO) had a solid day today confirming the good day on Friday. The XJO was up 0.62%. Not spectacular but solid.The Index is now above the 65-Day EMA and the three key Indicators (MACD, RSI & W%R) are all above their mid-lines. That's a bullish pattern.
I've included a chart today of the Small Ordinaries (XSO) because the Small Ordinaries tend to lead the market both up and down.
Of particular interest here is the fact that the XSO is well above the early February low, which also equates on the XJO with a critical resistance area around 4500 - right where the XJO is currently placed.
So - we have a strong positive divergence by the XSO from the XJO - that's what we need to see to confirm a bull trend.
Cheers
Redb
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