Respect the ANZAC's Tuesday and Wednesday, page-2

XJO up modestly today, +0.29%



The trend is flattening out.  XJO is marginally above the 200-Day MA but still held by the 50-Day MA and horizontal resistance.

The probabilities favour a pull-back from resistance which is likely to be bought as the medium-term trend remains up.  It depends on what happens with Financials.

XXJ (Financials), which have taken a recent pounding because of revelations at the Royal Commission, were up strongly today, +0.7%.  That’s the first day they’ve been up after eight days of declines.  We might see a bit more recovery, but it will depend on how many grenades get through at the Banks and AMP by the Royal Commission.  This week will see the RC continue to focus on financial advice, so the pain may not be finished, but perhaps the market has become inured to the bad news and start looking at fundamentals.  Today’s rise in the Banks was spurred by the release by ANZ of advance notice about their quarterly report due early May.  So the pendulum might be swinging to analysis of fundamentals.

XMM (Mining) was also up strongly +0.91%.  It is moderately overbought and likely to pull-back.  Buy the dip.

XEJ (Energy) was down moderately -0.58% and likely to fall more but look to re-enter in the near future.

RB