Overnight, US markets continued on with their volatile ways. At one stage the Dow Jones was down just over 250 points but a sharp rally into the close saw it turn around some four hundred points to close 153 points higher, a 3.7% about face in the last hour of trade. The Nasdaq closed 3% higher and the Russell 2000 closed up 6.4%. From this, our market jumped out of the blocks on the open, then gave up ground to close the opening gap throughout morning trade before a choppy afternoon rally into the close. Although the XJO closed up 1.4%, that is not really a significant rise in the current market. Nor was the price action terribly convincing given the results posted in the US and that technically it was potentially a significant day on the charts for the US indices. Volume was solid as it has been for most of the last nine sessions. Our market is oversold with a slight divergence on our indicator so really not inclined to be chasing short trades here and today’s price action was not that inspiring to step up to long positions – I’d like to see some more traction and follow through.

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