US markets had a solid session overnight;- the Dow Jones +2.3%, S&P 500 +2.8% and Nasdaq +3.3%, which would have no doubt fuelled opening gains on the ASX. Early gains were short lived however, as the market traded lower in choppy fashion for the rest of the day. The XJO closed lower than it opened within a very tight range but managed to post a small 5.9 point gain. Sectors were mixed with Property Trusts once again strong, up 1.4% whilst the Telecommunication sector was a drag on the market, down 2.5% as Telstra took a dive on ACCC concerns. Near term resistance is still 100 odd points away on the XJO and it is approaching overbought levels. Hence we see A-B-C patterns present in this type of environment though that is not always a sign of reversal. Most of the patterns also have large volume spikes or bubbles around the August 9 lows so care still required trading these patterns and in this market.

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