Wednesday, May 11, 2011

Postprandials, Wednesday 11/5/2011





Today the XJO (ASX200 - chart above) finished up 1.2%.  Volume was solid without being spectacular.  That's good - very high volume on a big up day often conceals selling by the "smart money".

Other major indices today:

  • XTL  (Twenty Leaders) +1% 
  • XFL (Fifty Leaders) +1% XFJ (Financials) +0.6% 
  • XMJ (Materials) +1.9% 
  • XSO (Small Ordinaries) +1.6% 



The best performing Sectors today were Materials +1.9%, Info.Tech. +1.8%, Energy +1.7%.  

Technical Comment on the ASX200 Market:

  • The Index is below 50-Day MA and the 13-Day MA.  Negative. 
  • Indicators: 

  1. Slow Stochastic 18.8 and rising above its signal line.  Positive. 
  2. The 13-Day MA is above the 50-Day MA.  Positive RSI  47 and rising.  It has broken above its down trend line from early April.  Positive. 
  3. MACD Histogram below Zero.  Negative.  but rising.
  4.  MACD below the Zero line.  Negative 
  5.  CCI -79.7 and rising.  It has broken above -100 for a buy signal. 



In the 50-Leaders the ratio for Advancers and Decliners was 5.1:1 - very bullish.  The A/D Ratio for the general market was 1.5:1 - positive but not especially so.  I'd prefer to see the A/D line for the general market better than that on a strong day.  The Small Ordinaries (top chart), in the short term, continues to outperform the XJO.  That's a positive.

Today's performance was good.  The market now needs to confirm with some follow-through buying.

Formidable resistance lies overhead.  

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