See charts below with an On Balance Volume indicator and the Money Flow Indicator using a 13 period

xao 22nd march 24

This recent weeks price action on the XAO (All Ords) resulted in what is called an "Inside Bar" -  when the current bar or candlestick is neither higher or lower than the bar before. You can google if you like but it means indecision or consolidation in the minds of market participants. Makes sense when you think that traders and investors are not sure if to push the market higher or lower, a bit like a Mexican standoff where no one is prepared to shoot first!

Last week I said.... "Inflection point! I have been saying for a few weeks now (reread previous comments) the MFI 13 period was not behaving in a bullish manner, it was pointing down whilst price and OBV were pointing up"

That situation remains, this week the price did bounce up from the longer term dotted blue support line. I am still bullish on this chart, the All Ords is still producing regular 52 week closing highs ( see below) and it appears to be a broad based rally with many stocks performing well, not just the big gorillas that often dominate the Aussie market index ( big banks, big resources, big health etc).

Another bullish sign coming from the US, is the support for the Russell 2000. A concern from some, has been the fact that the bull market is driven by the gorillas in the US too - being a handful of stocks in the Nasdaq. Very interesting is the look of this chart below when comparing to the XAO. The price and OBV are clearly trending up but the MFI shows some uncertainty for the time being. In my opinion the chart below could be the most important one of all. If this index - representing a much broader reflection of the US economy (which affects the world) continues to strengthen, this bodes well for the All Ords here in Australia.

Russell 22nd march 24

Until next week

Peter