ASX flat today, XJO up just +0.09%.
The chart shows overlapping candle-sticks the past few days different from the big gaps above the current congestion zone. Those gaps will invariably be filled at some time.
Dynamic Zone Stochastic is close to giving a sell signal and the Bands are closing together - so the next move should be to the upside.
To have much confidence in any upside move, the chart needs to get above the Kumo Cloud of the Ichimoku system.
At this stage, the next move is likely to be to the upside.
Best sector by far today was Info.Tech. +5.19%. That came on the back of a good night in the Nasdaq which had its best day so far in August. XIJ is showing a good deal of confidence in that big number today so that will probably back the upside move which I think is coming in the ASX.
Worst today was Staples after the market thought poorly of the report from Coles, down -7.08%. That was a seismic shock felt in Woolworths, down -3.03%. That takes Woolies down to a support level, but we might need a couple more days to see what the fall-out is like for Coles and Woolies.
BHP reported today and fell -0.71% which isn't too bad when compared to Coles. BHP also showed intra-day buying - which suggests cool heads weren't to concerned by the initial drop in BHP.
BHP is at a major horizontal support line and a high volume node (on the left of the chart). So more upside will probably be seen.
European stocks have started the evening well. German DAX up +0.97% and French CAC up +1.17%. US Futures are positive. Dow Futures +0.15%. Nasdaq Futures +0.42%. So the evening is starting off well.
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