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If we look at OBV – On Balance Volume – a useful guide to market strength – we can see that there is strong support for this market:
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And we see a supporting picture in the weekly chart:
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This is true also for key sectors.
The Finance sector:
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Materials:
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But if we look at the big chart – monthly for Materials we can see in relative terms, that the big money is not betting on resources:
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Following up on BHP we can see the stock is heading for a new wave five high but with not a lot of money behind it:
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Taking a quick look at the overall market we see the market is at a five year high:
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But still only half way back to the 2007 highs.
If we take a look at Elliott projections we can see further new highs ahead:
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But a pullback is due – the timing and nature I would not like to speculate on right now.
Just watch and see.
Enjoy the ride
Tom Scollon |