The Ozzie market ground to a halt today. XJO up +0.12% and plenty of intra-day selling to pull the index off its highs.
It seems that nobody want to take a risk until after the Federal Reserve hands down its interest rate decision tomorrow night (Oz time).
Momentum has ground to a halt as evidenced by a flat RSI and flat DZ Stochastic.
RSI is at such a low level that I'd have to think the only way from here is to the upside. But - the market might have different ideas.
Despite the flat finish, eight sectors were up and three down. Materials (XMJ) was a big drag on the market, down -1.08%. At the other end of the scale was Property +1.06%.
Today's bullish engulfing candle, coming at the end of a down trend, looks tantalizing. At the very least it suggests a short-term up-trend. Are some big punters taking a bet on the Federal Reserve holding interest rates steady?
In early trading this evening, European stocks are moderatly up. STOXX600 +0.4%.
Dow Futures up modestly +0.26%. Oil is also up +0.94%. Computer says - NO. Shouldn't happen. Dow and Oil are usually inversely correlated. Bond yields are down a little (price of bonds up). That's the way it "should" be. Maybe Oil has got it wrong.
Good luck.
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