The above chart is for the ASX200 (XJO). It and the XAO are the two main measures of the broad Australian market. The XAO looks quite similar to the XJO.Today - looking at the volume histogram you see a negative bar. If you looked at the same chart for the XAO you'd see a positive bar. Absolutely nothing in today's action. It was flat. The XAO was up two points. The XJO was down 1.8 points.
The action today does, however, hide a degree of strength:
- Small Ordinaries: +0.5%
- Mid-caps: +0.4%
- Advance/Decline Ratio: 1.26
The three worst performing sectors today were all Defensives:
- Health: -1.4%
- Telecommunications: -1.1%
- Utilities: -1%
The fourth Defensive Sector is Consumer Staples: -0.4%
All of that adds up, for me, to a plus day for the bulls. Although the market by the main measures was flat, there was switching out of defensives into more growth asset classes (Materials and Energy) and plenty of appetite for risk (pushing up the Small Ordinaries and the Mid-Caps).
That suggests, barring the unexpected, that tomorrow will see some upside.
We shall see.
Good luck
Red
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