After opening with a new all time high this morning, the XJO fell into negative territory. Down -0.13%.
The chart shows a bearish rising wedge – which is the first bearish chart pattern for a long time.
A break below the support line of the wedge would indicate much lower figures. We could see a fall of around -4%.
Today, four sectors were up while seven were down. Best today was Property (XPJ) +1.34% followed by Information Technology (XIJ) +0.92%. Worst today were Health (XHJ) -0.78%, closely followed by Utilities (XUJ) -0.77%. Resources were again weak, Energy (XEJ) -0.45%, Materials (XMJ) -0.72%.
Gold Miners had a positive day up +3.29% and is now at a critical oblique resistance line.
GDX is in a large bullish falling wedge – in contrast to the XJO which is in a bearish rising wedge.
Indicators all have positive divergences suggesting further upside.
This may be telling us something important about the state of the market. Watch carefully these two charts which often travel in opposite directions.
Good luck
Australian Market Report 