Weekly Report 9th February 2015:
The Australian markets look set for a retracement after 12 up days in a row.
With last week producing a better than 260 point range.
With Ex dividend stocks making a run up into reporting.
The Daily chart of the XJO shows the rejection from Friday playing out today with a retest of 5660 expected.
The RSI is also at the Extreme over brought level of 93.
The Dow marches on after touching the 200 day moving average.
The daily chart shows the breakout from the pennant with a weak day showing on Friday.
Expect a retest of the breakout back to 17500, this level is now significant support.
This consolidation can simply continue, however with the strong jobs report I would expect a higher market soon.