A choppy day on the S&P/ASX 200 Index today up just 2 points to finish at 4217 points.
The 4200 point level of resistance remains broken, with volume now building post NY, above the 20 day moving average (pink line in chart below), with the the next target of 4300 points to be cleared before a new bear market rally can be called:
Other Asian markets were more forthright, with Japan’s Nikkei 225 up 1.3% or 107 points to 8573 points, the volatile Hang Seng currently up 58 points or just 0.3% to 19685 points whilst the Shanghai Composite is also flat, currently down some 6 points or 0.25% to 2291 after yesterday’s stonking 4% rally and trying to breach resistance at 2325 points:
The AUD was flat, currently trading at 1.0389 against the USD, whilst WTI crude broke the $101USD barrier, up 63 cents to $101.34USD a barrel.
Gold was also flat, currently at $1656USD an ounce or $1593 AUD per ounce.
Movers and Shakers
Mixed sectoral results today, with half and half the tone: materials and IT saw good bids, whilst real estate and financials were sold off.
The banks were mainly sold off or flat providing FRUSTRATING signals (ahem) to traders, with ANZ down over 1%, still refusing to breaking out of its bullish rectangle pattern, the big brother of banks, the Commonwealth (CBA) was COMPLETELY UNMOVED!!! still refusing to go over $50 a share.
National Australia Bank (NAB) was down 0.5% and remains in a holding pattern, whilst Westpac (WBC) slipped around 0.4%, still lolly gagging along at support at $20 per share:
Moving on, and Macquarie (MQG) also slipped as it too remains flat on the charts (but bearish long term), whilst healthcare favourite Cochlear (COH) rebounded again, up 0.7% and above its short term rising support line.
Its “twin” CSL fell again, down 0.4%, as traders emptied their positions as the short term trend line has been broken.
Telstra (TLS), saw another surge in volume but this time finished flat – still waiting for that blowoff thesis to crystallise, ominously, CBA called TLS overbought today. Hmmm..
To the resources, where BHP Billiton (BHP) was up again, almost 1% and just on resistance at $37 a share, where a breakout above would be very bullish for the stock, and the broader index.
Meanwhile, its “twin” Rio Tinto (RIO), was up 1.4%, gold miner Newcrest Mining (NCM) was up 1%, as AUD strength keeps any rises in the spot gold price steady whilst Fortescue (FMG) shot ahead nearly 5%, its short term bearish pattern obliterated in a sea of dull iron ore volume.
To finish out the ASX8, Woodside Petroleum (WPL) accelerated again, up 1.4%, building on its short term uptrend.
Finishing up with the defensive stocks Wesfarmers (WES) and Woolworths (WOW) were both down similarly, and both going nowhere for now.
I still contend the majors to watch are BHP and CBA – both ready to pop – expect to see a significant rally if both have a bullish breakout, as the trend followers and ebullient brokers, bulls and madmen (but I repeat myself) bid up everything and anything alongside these two “House and Hole” bellweathers.