The market was down a bit today (XAO -0.46%). The range today was within the range of Friday. Volume was a bit below average, but it is Monday. So the professional traders were still wending their way back to the office from the Northern Beaches in Sydney and back up from Portsea to Melbourne. It's a tough life - but somebody has to do it.
We continue to ahve a bifurcated market. Materials were flat, while Financials were down -1.3%. Westpac went ex-dividend today, but, even taking that into account, the Financials were down much more than the general market.
I mentioned in my weekend report, that if the market showed a big down day, further downside would probably be seen.
Well, today doesn't meet the criteria for a big down day. It was down, but inside the range of the previous day, and on lower volume.
While we continue to get days like today, the overbought nature of the market will be worked off and another leg up is likely.
If this market is to go into reverse, we need to see clear evidence of a trend reversal. Today was not it.
Cheers
Red
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