Today the market acted "normally". The euphoria over the good results from Apple and IBM in America carried over into the Australian market and it went up +0.7% on good volume.Appetite for risk was back with the Small Ordinaries up +1.1% while the 50-Leaders was up 0.6%
The Daily Stochastic has a reading in the Overbought range - Caution required. (But as the great stock market sage commented - Overbought can get more Overboughter.)
We've had two days with wide range bars closing near the top of the range. It would be unusual for a third day to occur with such parameters. That doesn't mean we'll see a down day tomorrow - but a weaker day than today is on the cards.
If we see a big reversal day tomorrow, then that would be a big negative.
For the time being, the trend is up. And it is up on all time scales, Long-term, Medium-term and Short-term. Until the trend clearly reverses, the trend remains up.
I hope you read my post from earlier today. The "rocky road" didn't eventuate - but the comments about the general state of the market remains a cautionary note.
Good luck
Red
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