The market remains in a holding pattern.One of the more absurd comments I heard today was by a TV commentator who said that the market was in a holding pattern before Melbourne Cup Day. To give him some credit for intelligence (I'm a generous fellow) I think the implication was that the Reserve Bank meets that day. But, hell's bells, we've been in a holding pattern for many days now - the plane is out of fuel. :)
Events overseas will have a much greater impact than either the Melbourne Cup or the RBA meeting. The RBA meeting on interest rates might have an impact for a couple of days - then it will be quickly forgotten in the wake of international events.
In the meantime .......... I'm not waiting on Melbourne Cup Day for guidance.
The market was flat today. But it was better than it seemed despite the sell-off in the afternoon to bring the market down.
The A/D Ratio was 1.13:1 while the AdvVol/DeclVol was a sound 1.9:1. That gives a Trin reading of 0.59 which is very bullish. Anything under 0.9 is considered bullish.
That doesn't mean the market will be up tomorrow. Just consider the reversal day today as not very important.
The trend line shown on the chart above is the thing to watch. A break below that would be bearish. A break below the 4600 area would be a big big negative.
Cheers
Red
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