|
Good morning CVELU, The Australian market remains in no man's land, so patience is still the best approach. The XJO needs to stay above 8,740, with 8,650 being the line in the sand. A break below there would quickly turn the market bearish. On the upside, a decisive move above 9,000 would signal the next leg of the bull market.
Technology (XIJ) has rejected a major resistance level and has now turned bearish, while communications continues to look weak. Healthcare is having a healthy pullback, and I'd like to see buyers step back in around the 24,000 to 25,000 region. Consumer staples and utilities remain the strongest looking sectors. Energy is still constructive but is becoming extended, so a healthy pullback around 10,800 wouldn't be surprising.
Materials is at a critical point. A break above 23,600 would be very bullish, while a fall below 22,000 would likely trigger a much deeper decline below 20,000.
Gold and silver are sitting at major support. Gold needs to break above 4,200, while silver needs to clear $61 to confirm the next leg higher. If silver falls below $56, expect more short term weakness.
Finally, the NASDAQ is looking increasingly vulnerable. It's very extended across multiple time frames and showing growing signs of weakness. I'd be cautious on growth stocks, as a larger pullback over the coming months looks increasingly likely.
Have a great week.
|
