Monday, April 18, 2011

Postprandials Monday 18/4/2011

The All Ordinaries Index (XAO) was up just +0.12%.

Volume was well below average.  Less than 1billion shares traded - that's unusual outside the Xmas/NewYear period.  The Small Ordinaries were on the bearish side -0.1%.    The Advance/Decline Ratio was also just on the bearish side 0.9:1.

The market is at a level where a reversal could occur:

  • at support
  • MACD Histogram at the Zero line
  • RSI, Stochastic and CCI near their mid-lines.
Those indicators are, however, well above oversold levels where the probabilities strongly favour a reversal upwards.

The lack of volume support on a weak up-day suggests that this market wants to go lower.

So - until we see those oversold levels reached, I'll have to conclude that this market will continue to trend lower.

A big up day tomorrow would negate that bearish sentiment.

Good luck
Lance

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