A late afternoon rally put some respectability back into today’s session, but the day as a whole was not that convincing. Gains on US indices of 1.3% and 1.6% for the Dow Jones and Nasdaq respectively, saw our market jump out of the blocks with some nice gains. For the rest of the day it sold off back to the opening levels, looking ordinary indeed. As mentioned, a late afternoon rally ‘saved the day’ to post some decent figures on paper. The XJO closed 65.9 points higher, a gain of 1.6% on increased and above average volume. Normally a 1.6% move would present a solid session but in the context of the last month with the increased volatility that is present, it is almost an average trading day. As such, the jury is still out as to whether buyers are going to step up somewhere in this support zone in a meaningful way. We have effectively been in a sideways pattern for just over a month, the longest rally in either direction of just four days which has happened once.

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