XJO up modestly today +0.37%.The short-term trend is up.  The...

XJO up modestly today +0.37%.

The short-term trend is up.  The medium-term trend remains down.

We still don’t have a higher high on the daily chart.  The chart is currently at 5896.5.  The previous high was at 5924.8.  Until the XJO can get above that level, caution should be observed.

Here’s an interesting statistic.  The Australian Vix has been down for nine days in a row.

The last time we saw a similar figure was back in February, 2018, after the XJO bottomed on 9 February.  At that point we saw the VIX fall for ten days in a row.  The XJO then fell nearly 6%.

I think it might be injurious to your wealth to buy into this market.

History isn’t always a guide to what will happen next.  At the moment we’re looking at the Elections in America, and a possible China/U.S. trade deal – and lots of other things you’d like to mention.

But – we are now looking at an over-extended market in Australia.  That can’t last for very long.

RB