**
XJO
Mth -
The price chart in the Toolbox Home Page
header.
(updated 10 May 2013)
Note the
details of the share price chart in the page header of the Share Market
Toolbox home page - a monthly
candlestick chart of the XJO
index (S&P/ASX 200). You can click here to see the chart again in a new window.
- This monthly candlestick chart starts from the bull market
peak in October 2007, and the vertical grid
lines are one month apart.
- The May 2013 candle is now forming.
- Each candlestick on a monthly
candlestick chart summarises the price action for a whole calendar
month. More
candlestick
details here...
- The vertical value axis has horizontal grid lines
from 3000 to 7000 at intervals of 500.
Observations from this chart:
- This chart is reminding us that our market peaked in
October/November 2007, and is still below that peak.
- Each month the chart is compressed a little more so we can
still see the last market peak.
- Our market has not yet made a new high since October 2007 -
now more than 5 Years!!!!
- You can see the monthly candles more than two years ago
were nudging the 5000
point
level in March 2010 and again a year later, and are flirting with that level again now.
- And both the XJO
and XAO
indexes were hunting around either side of the
30-week Moving Average, before a major fall in May 2010 and recovery in
the following months; then basically traded sideways for a long time
(our money might have been better off in the bank!). Since late 2012
the index has been trending higher - but can it last?
About the 30-week Simple Moving Average (SMA) - the curve across the
chart:
- Observing the 30-week SMA according to Stan
Weinstein's strategies - see an introduction here.
- Until mid-January 2010, the index was tracking above the
SMA -
suggestive of bullish conditions.
- In early May 2010 the index plunged
below the SMA and has been jumping either side of it ever since.
- See more details about this strategy for Toolbox Members here (left hand column - Article ST-6410).
Click here to see the chart again in a new window.
For more details, also see the Weekly
Share Market Analysis in the Members' Area.
Robert
Brain
ps: Beware the sharks in the
ocean!