Market Comments 14/12/2010

This morning I put up a few charts from last night's American market, and concluded that the Ozzie Market might be down today. Well - that was a miss - but the XAO certainly wasn't strong today, up +0.2%. Today's trading resulted in a narrow range bar inside the range of yesterday's bar.

That denotes a day of indecision.

Perhaps of more importance is the volume indicator for today. I often say that volume on Monday and Friday are lower than average, while the middle days of the week are higher.

Well, today, the volume was well down on the average. Smart money was not interested in this market today.

That doesn't mean the market will fall. It's a warning. Look to the action tomorrow for direction as to a decisive move. If the market action tomorrow is on above average volume, then the direction of tomorrow's move should be decisive for the next few days.

The early November high still shines like a beacon and the trend remains up.

Let's see what tomorrow brings.

Good luck

Red