If you weren’t looking at charts for the last couple of weeks you would have ‘’felt’’ that the market was on the skids. But it really has been a mere gentle slide.
Nevertheless, we don’t know if the slide can gather more momentum. Bulls and Bears are sort of in balance with maybe the bears having a slightly stronger grip.
There has been remarkable resilience over the last few weeks against much uncertainty. I am more surprised that those who have not had to buy have done the talking with their money.
Volume is relatively strong:
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All Ordinaries (XAO:ASX) Weekly Line Chart
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You can see a divergence between volume and price for most of the year.
But I also sense a piece of bad news could change all this as the market is priced for perfection.
Let’s take a quick look at the indices
Financials:
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S&P ASX 200 Financials (XFJ:ASX) Daily Line Chart
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Very soft. Looks even weaker on the weekly chart:
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S&P ASX 200 Financials (XFJ:ASX) Weekly Line Chart
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Energy:
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S&P ASX 200 Energy (XEJ:ASX) Daily Line Chart
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A carbon copy of Financials.
Industrials:
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S&P ASX Industrials (XNJ:ASX) Daily Line Chart
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Not so weak, just going nowhere.
Staples:
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S&P ASX Consumer Staples (XSJ:ASX) Daily Line Chart
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You are watching your pennies!
Discretionary:
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S&P ASX Consumer Discretionary (XDJ:ASX) Daily Line Chart
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Those of you with a job are spending like "you can't take it with you".
Materials:
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S&P ASX Materials (XMJ:ASX) Daily Line Chart
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World demand is making a huge contribution to our economy - for now... So, nothing excessively worrying about the above - for now...
Enjoy the ride
Tom Scollon
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