This chart shows the relative change today of the relative strength of indices compared to 50 days ago. That's a mouth full.But simply put - indices beneath the 0 line were weak - indices above the zero line were strong.
And this shows a clear dichotomy between defensive stocks and cyclical stocks.
The four longest columns below zero are the Defensives - Utilities, Telecommunications, Health and Consumer Staples.
The four longest columns are Property Trusts, Materials, Energy and Consumer Discretionary. (I've ignored the Metals and Miners as it makes up a considerable part of the Materials Index).
This is a very bullish scenario.
The only proviso is set up by the fact that the Small Ordinaries is negative while the 50-Leaders is positive. In a bullish market, we'd expect those to be reversed.
So - this makes things look good for the bulls - but it is not all their way - just mostly.
Cheers
Red
