Volume was well below average. Just over 1billion shares traded - that's unusual outside the Xmas/NewYear period.
The Small Ordinaries were on the bearish side -1.9%. The Advance/Decline Ratio was an extremely low 0.33:1. Such extreme readings are seen at or near market lows.
Today the market broke marginally below two important support levels:
- the 50-day Moving Average
- horizontal support at 4809.6
Important technical developments today were:
- MACD Histogram broke below the Zero line.
- RSI finished below its mid-line at 45.8.
- Stochastic (33.9) continued heading down but hasn't reached oversold levels below 20
- CCi continued down and finished at -23, still above oversold levels of -100.
The market is presenting a conundrum. The American market is showing above average volume on the declines. The Australian market is showing below average volume on the declines. hmmm. One thing's for sure - there's no demand. It's just that the sellers in America are more emphatic than the Australian sellers. I'll leave that one with you.
After such a big down day, a small rise tomorrow seems likely.
The indicators are not showing the oversold extremes one expects before the market reverses upwards. But they're getting close.
Good luck
Redb
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