Today the ASX finished down -0.8%. It is just below a significant horizontal support level and the 50-day Moving Average. Volume today was heavier today - but has not yet reached panic proportions.
Other major indices today:
- XTL (Twenty Leaders) -0.9%
- XFL (Fifty Leaders) -0.8%
- XFJ (Financials) -1%
- XMJ (Materials) -1.3%
- XSO (Small Ordinaries) -1.1%
The best performing Sectors today were Telecommunications and Utilities +0.3%, both are defensive sectors.
Technical Comment on the ASX200 Market:
- The Index is below 50-Day MA and the 13-Day MA. Negative.
- Indicators:
- Slow Stochastic 18.7 and falling. Oversold.
- The 13-Day MA is above the 50-Day MA. Positive
- RSI below its mid-line, now 43.9. Negative
- MACD Histogram below Zero. Negative.
- CCI -161.5 and falling. This is now getting down to a region where a reversal could be expected.
- Volume was high but not indicative of panic selling.
In the 50-Leaders the ratio for Advancers and Decliners was 0.5:1 - bearish. On the 50-Leaders the A/D Ratio was 0.37:1 - bearish. There's no indication yet that the market is willing to take on risk. That can, of course, change very quickly
The Index has now broken below the dual support (horizontal and the 50-Day MA) but the break so far is marginal.
Today's action may have been more positive than it looked. The range today was within the range of yesterday. The last hour saw some solid buying - often indicative of institutional activity. It's hard to see, however, that our market could make much headway if America falls. And the American market is currently overbought. But - you never never know.
I'd still like to see some positive action before coming back into this market. In particular, I'd like to see a positive divergence on the RSI and Stochastic as a precursor to a return to the upside.
Good luck
Redb
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