Well some more interesting times in the markets, I've already had my fill of excitement thank you very much, is a nice calm run into Christmas to much too ask for again?
So a potential inverse head and shoulders showing (yes I know I am the 100th person to mention this today ), although delving deeper into what is going on I find interesting (IT, Materials & Metals and Mining also showing similar formations). But if it is going to succeed, it is an entirely logical spot for it it bounce off, and could see us work back up toward 6200 if we are so lucky. I suppose one question is... is the formation too obvious? Things that blatant would otherwise be seen as a trap, especially with every man, woman, dog and their grandma spotting this one it seems.
Anyway, here's some broader market thoughts.
XJO (ASX 200) daily the main one keeping an eye on, the congestion from mid to late 2017 should again prove tough for the market to break down through:
Likewise on the S&P 500 in the US has a similar look to it.
As you break things down a bit more, you see a chart in the Midcap 50 that probably better reflects how most of us are feeling the market is moving right now; a pretty flat 6 months followed by "Red October".
Compared to the big 20 (the bluechips, which account for something near 50% of the overall market cap on the ASX, it's a massive portion either way).
The divergence between the 2 is interesting to me, not clear to me how much that means yet. But generally money rotating into the blue-chips is seen as a defensive move, one moving towards safety and one in step with the overall nervousness that is still floating around the markets. But it's nothing too extreme yet, just a small thing of interest.
Moving on to my favorite, the XEC. Sadly it's tumbling on down the stairs. Overall the spec end has been looking bearish for the majority of the year, with only some brief rallies. I'm as much of an optimist as the next guy or gal, but overall right now seeing little to write home about.
It would also seem it has been the Financials where money has rotated to, wouldn't it be nice to see that banks rally... One can dream.
You can probably look at this more than one way for sure. Some of the ASX has not been pulling it's weight this month, and will almost certainly need to start doing so, as it appears to have been the big boys leading things. Tough to predict whats around the corner at the best of times, but initial thoughts are if things hold here we'll get knocked sideways for a bit. Like usual the ASX indices have followed US down after getting whacked lower, but typically enjoying very little of the rallies. But overall a lot of movement happening at logical points, and if form follows there should be support coming in. But assuming things hold, how it behaves after could be quite telling, very much feeling like make or break time for me if we have any hopes of a decent end to the year. Anyway, that's all folks, just my underqualified idle thoughts and observations on another down day.
), although delving deeper into what is going on I find interesting (IT, Materials & Metals and Mining also showing similar formations). But if it is going to succeed, it is an entirely logical spot for it it bounce off, and could see us work back up toward 6200 if we are so lucky. I suppose one question is... is the formation too obvious? Things that blatant would otherwise be seen as a trap, especially with every man, woman, dog and their grandma spotting this one it seems.
(20min delay)
