Market Comments 8/12/2010

The market was down today, XAO -0.51%.

The Slow Stochastic is overbought and has crossed marginally below its signal line.

Today's action was an "inside bar" - that denotes indecision. Volume was about average. Given that this is the middle of the week, when volume typically is higher than average, then we can assume that the punters were not putting a lot of faith in this pullback.

The market today broke below 4800, the first line of support. But the break was not decisive.

The next line of support is at 4770.

I'd expect a normal retracement at these levels to last 3-5 days without breaking any major moving average. The 50-Day Moving Average, for instance, is at 4740. If that holds, then I think we can expect to see another move upwards.

Let's see how it goes. DYOR.

Event stocks today? One stood out. CFX. In recent times it has been a perennial dog. Today it broke sharply higher on a weak day. hhhhmmmm. Volume was good.

I can't find any particular announcement marked as "price sensitive" to explain the move.

Yesterday before the opening they released a Melbourne property tour booklet. The announcement was marked as not price sensitive. I haven't read the booklet. I just offer it for what it is worth.

The jump today is something of a mystery to me. But I'm just a humble chartist trying to make sense of a chaotic environment.

In such an environment what does the big jump in the price of CFX mean? I'll leave that for you to judge.

Cheers

Red