A very choppy session on the ASX today with a downward bias; opening gains were quickly negated and the market then range traded in a 30ish point band for the rest of the day. The XJO closed 12.8 points lower, a 0.3% decline, bettering the Small Ordinaries which was 0.5% lower. Most sectors were down, but none were up or down more than 1%. US futures have been down since early on in the night session, roughly 1% at the time of writing, which no doubt would have dragged on the market despite 1.5% gains overnight for the Dow Jones. The Type-A bearish divergence that was present on the XJO four days ago has almost unwound, not to suggest that prices can’t travel lower, but we are closer to an oversold situation. Having gone over more than four hundred charts today, pattern based setups – long or short – are hard to come by for short term discretionary trading. The market has essentially gone nowhere for the last three weeks so some upward conviction would be welcome.

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