A nice bounce at the close of the week almost brought the market back to where it started.
Now here is something interesting when looking at the market.
The material sector as a whole (mostly BHP and RIO) has not formed lower lows unlike the rest of the market. This means the market may still rally a bit more.
Never look at one piece of the puzzle and think you have it worked out.
Looking at the last hour of trade we find this to be closing up. What this generally means is that the big boys who come out to play in the last hour are buying up which indicates that the market still has some upside to it.
Thursday and Friday last week fell in line with these indicators moving up strongly over those two days to recover the losses of the week.
Is the monetary policy of the US really going to push or market to new lows? Maybe, but what we are seeing is that there is still good support out there for our market.
Remember the US market has moved beyond GFC levels. However, the Australian market has not.
So although we look for leadership from the US it does not mean their fate will be ours.