See charts below with an On Balance Volume indicator and the Money Flow Indicator using a 13 period
You either love trading and investing, find it interesting and challenging or it really frustrates you. This week I admit falling into the latter mindset as the market went through its "normal" ups and downs. Normal as in indecision, worry, fear and uncertainty. That mindset is reflected in the fact of only two 52 week highs this week for the Mindful system.
Taking a step back from all the emotion continually surrounding us - is the fact the chart above still shows a strong uptrend. Price has come back to horizontal support of around 8,000 and the volume indicators are hanging on also at supportive trend lines. You can see that the market has gone up and down now for 12 weeks, between 8150 and 7800.
Fears over the direction of interest rates continue and the commodity stocks took a hit as prices in most underlying commodities fell. On Friday night in the US some commodity prices and stocks recovered a little, so we may get a better start to the week on Monday.
Until the market gets some positive news the probability is it will drift sideways to lower. Unless of course the US indexes continue to rally and pulls our indexes along for the ride. Strength still appears to be in the Tech sector - as much as I want to see the Russell in the US perform, it wont happen until it does.
Until next week
All the best
Peter