Volume was below average. Just over 1billion shares traded - that's unusual outside the Xmas/NewYear period. 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 low volume on today's strong up move is in contrast to the American case, where last night's move was accompanied by very high volume.)
The Small Ordinaries was bullish +1.7%. The Advance/Decline Ratio was also good 1.92:1.
Today the market broke back above two important support levels:
- the 50-day Moving Average
- horizontal support at 4809.6
Technical comments today:
- MACD Histogram remains below the Zero line.
- RSI kicked above its mid-line at 53.2.
- Stochastic (29.4) continued heading down but hasn't reached oversold levels below 20
- CCi kicked up and finished at -12.5, still above oversold levels of -100.
Today's market looks like a key reversal upwards. Futures in America are currently looking very strong (Dow Industrials +85). Rarely does a down day result when the futures are this strong. It's still some time before the market opens in America - but those figures are unusually positive.
I think we saw a short-term bottom today - in the context of a longer term positive market.
Good luck
Red
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