"Strasnge days indeed." (John Lennon.The past two days on the XAO have been narrow range days on high volume. High volume is usually accompanied by high volatility. If this is a battle between bulls and bears, then it is a most unusual battle.
The XAO was again flat today up just 0.1%. The past two days have seen this indicate oscillate tightly around that old level - 4500, finishing at 4509.6. Indicators are still showing that the market is trending sideways.
The 50-Leaders registered a movement of 0.0% - flat. But the Small Ordinaries recorded 0.5%. There's no indication there that the market is in danger of falling.
The A/D Ratio was positive but unspectacular at a ratio of 1.2. The AdvancingVol/DecliningVol was more solid at 1.8. That's a good reading on a relatively flat day.
Clearly the fall in BHP over the past two days has been a dampener. It closed at 40.2 on Tuesday and today finished at 38.3.
It only takes a fall in a behemoth like BHP to skew the results on the Australian market.
Of the other two blue chips on my watch list, CSL has fallen away from the critical buy level while WOW is solidly above. CSL is now at the low of its trading range, so it could be setting up for a nice short term trade. For more conservative investors (like me), I still would like to see it break above the current trading range - the top is around 34. Today CSL closed at 31.80. That's only about a 2.00 range for CSL. It could easily meet my buy criteria in the near future.
Gold ETF is still being held at resistance. It needs to get over the 135 level if it is to make further headway.
Cheers
Red
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