The ozzie market had a rare show of confidence today despite the looming Federal Reserve decision tonight. XJO up +0.85%.
XJO has been in a lengthy down-trend since August (three months), but we now seem to have the start of a counter-trend rally (at least). It still has a lot of work to develop a strong bull up-trend.
XJO has formed a three day reversal pattern at the end of this down-trend (big down day, doji, big up day). That's usually a reliable reversable pattern.
The index is coming off a very oversold condition. RSI was below 30. That also suggests we'll see a good rally.
We'll just have to wait and see if this is a rally which should be sold into.
Nine out of eleven sectors were up today, led by Property +1.85%, followed by Health +1.45%. Those have been two beaten down sectors. Perhaps they are now taking over leadership roles.
European stocks are up a little in early trading. STOXX600 +0.17%. Dow Futures -0.37%.
Oil is up +0.75%. That fits with a down sentiment on the Dow. It looks like the Americans will need a boost from Fed Head Powell if it is to get back into positive territory.
Good Luck
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