The XAO had a poor week this week and remains in a trading range. Plenty of evidence exists that our market and the American market may be at a short term bottom:
o Breadth on the broad Australian market
o Breadth on the 50-Leaders
o Upside break on the Ozzie Dollar
o Upside break on the Russell 2000
o Contrarian signal on the Investor Sentiment Bullish Ratio
o Topping signs on long term American Treasuries
o Positive technical signals on Copper
o Short term alerts to a positive trend change on the XAO
A break by the XAO of its down-trend line would confirm a short-term uptrend in place. A break above 4620 could suggest a medium term uptrend confirmed.
There's a lot of fear in the market regarding the month of September, which is traditionally the worst month of the year. It doesn't have to be. But it does suggest that one should keep the finger hovering over the sell button and use it on any break lower.
Watch the blog for daily updates (Monday to Thursday):
http://redbackmarketreport.blogspot.com/
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