Can't Change The Headline

The XJO finished on the doorstep of 5,100, capping another positive day despite a lacklustre BHP result and some negative pressure surrounding the major miners. The index has now gained 9.67% in 2012.

On the hourly chart, price action finished the day above the uptrending channel. However, bears brave enough to stand in the way of the market can maybe draw some solace from the MACD & stochastic indicators, which suggest a run into some short-term downward pressure.

The daily chart tells a similar picture, with a second consecutive close above the resistance line originating from November 2012. MACD is actually gaining positive momentum, even though stochastics are screaming to extremely overbought levels. Though one must note the stochastics have been in this region since December, and have been overwhelmed by this huge wave of positive momentum carrying the market. Bulls will now look to 5,177, the mark reached in September 2008, as their next level of resistance.