This market is setting up for a move higher - but you wouldn't think so based on today's action.
The market was up quite strongly in the first hour - and that was it for the day. All down hill from there.
Friday was similar - except it peaked in the first half hour.
This is clearly a battle ground between the bulls and the bears. The bears are currently winning. But no decisive victory. That suggests that the bulls just might have something up their sleeve.
The Slow Stochastic has slipped higher and out of the overbought area.
Before taking action we need to seen a decisive upward break from the down trend line and much more positive action from the MACD.
Checking through the 50-Leaders, I couldn't see anything particularly noteworthy.
Two stocks are above the 70 RSI - AXA and Worley Parsons. AXA is under take-over offers - so that is not surprising - and not meaningful. Worley Parsons has had a great run and is probably due for a retracement. Doesn't have to happen - it could just trend sideways while the overbought condition gets worked off. But - it's worth keeping an eye on.
No stocks are below 30 on the RSI although three are close: ANZ, NAB and WOW. Those are worth keeping an eye on for a reversal to the upside.
Cheers
Red
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