Another solid day on decent volume adding weight to a bullish argument for our market. As a positive way to end the week, the XJO has added another 2.3% to recent gains to close 93 points higher for the day and 3.84% higher for the week. It was once again the energy, financial, mining and materials stocks leading the way. Small caps did well, the Small Ordinaries closing 2.7% higher. If this strength continues we could see the system portfolios switch back on soon – the Growth Portfolio has another 95 points or so to make up and the ASX Systematic Power Setups only another 30-35 or so. Today’s gains also sees our daily trend indicator switch to ‘up’ and momentum is starting to improve. A few long setups have been posted in the discretionary setups but they come with the following caveats; although the market is showing some promising bullish signs, it has been volatile for two months and remains so. The market could easily turn on a dime as it has done numerous times during that period and now, after recent gains, the market is approaching an overbought situation and potential resistance.

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