Postprandials Wednesday 13/4/2011

4

XJO 4911: +0.25%.

Japan: +0.9%

Hong Kong: +0.66%

Singapore: +1.13%

(Australia was the laggard today)

Technical Comment on the Australian Market (XJO):

1. Clear reversal of trend with break of uptrend line on Tuesday.
2. For a clear medium term "sell" signal I like to see five indicators in sync:
• Slow Stochastic below 80 (condition not met)
• Break below the 13-Day MA (condition not met)
• RSI below its mid-line (condition not met)
• MACD Histogram below Zero (condition not met)
• CCI below 100 (condition met)
3. Volume was less than yesterday but more than the previous day.  
4. Significant horizontal support in 4800 area.
5. 50-Day Moving Average currently at 4811.  That might provide support if this market continues to fall.

You only have to look at today's chart to see that the market is at a significant support area.  So a pause (or something more) here is likely. 

On this morning's blog and yesterday - I suggested some sort of rebound.  That's probably anticipating a reaction to recent weakness in America.  I'm expecting America to be up tonight.  

So tomorrow could see a bit more upside - but I think that will be it.  The American market is very weak, and the action in Australia on Tuesday was bearish.  

But - you never know with the stock market.

Cheers

Red.