Despite the big move by the American market last night, the down movement I expected from yesterday's Australian action occurred today.
The switch out of Financials and into Materials continued with a vengeance today - but not enough to keep the market positive.
Apart from the Materials, the only sectors positive today were three defensive sectors: Consumer Staples, Health and Utilities.
Small Ordinaries(-0.3%) didn't fare as badly as the 50 Leaders (-0.6%). So some appetite for risk remains (as evidenced by the positive showing in Materials).
The five-day average of Advancing issues turned down today. The last time that happened was in mid-October which led into the big retreat finishing in early November. A turn down in this indicator is often (but not always) the beginning of a retreat.
Follow through selling tomorrow would be very bearish.
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