26/10/23. Thursday Evening Finspiration Report.

XJO finished down -0.61% but well off its early lows.

RSI is well oversold currently sitting at 31.18.  Currently, it is showing a small positive divergence from the low of 6 October, the date of the incursion by Hamas into Israel.  MACD Histogram also shows a positive divergence.

The index is in a long down-trend from early August, currently down -9.27%.  That's close to the "official" definition of a correction -10%.

This appears to be setting up for a rapid reversal to the upside.  Wait.

Yesterday, we saw some disappointing inflation figures - higher than expected.  That may put pressure on the RBA to raise interest rates.

RBA Governor Michelle Bullock gave a speech today which was relatively dovish - not what was expected.  As a result, likelihood of a rate hike fell to 31%.

Only two sectors were up today, Utilities +1.3% and Materials +0.14%.

Worst sector today was IT -2.56% and Property -2.07%.  Both are interest rate sensitive sectors.  I guess they didn't read the RBA memo.  :)

Europe is down heavily in early trade.  STOXX600 -0.95%