Thursday, April 21, 2011

Postprandials, Thursday 21/4/2011

The All Ordinaries Index (XAO) was up +1.13% and finished at 4913.8.  

Volume was below average.  Just  under 1billion shares traded.   That finishes a week of low volume.   I thought this might be a pre-Easter effect - so I checked on last year's volume.  A similar fall off in volume did not occur then.  So this year's pullback in volume is a concern.  

The Small Ordinaries was in line with the market +1.2%.    The Advance/Decline Ratio was strong 1.97:1.  

Today the market moved further above two important support levels:

  • the 50-day Moving Average
  • horizontal support at 4809.6
Technical comments today:
  • MACD Histogram remains marginally below the Zero line.
  • RSI - 58.5.  Positive
  • Stochastic (35.6) still hasn't crossed above its signal line.
  • CCi kicking up and finished at 48.6.  Positive
Today's market consolidated on yesterday's strong gains.  There's no indication that I can see in today's action that we're close to a short-term top.

America now has three trading sessions before we open again.  Anything can happen in that time span. I was surprised that our market didn't sell off in the late afternoon session given the uncertainty that might lie ahead in American action.  But I guess the bull is on a run.

Good luck
Red

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