The XJO index has been running into selling resistance as the resource rally tires and the banks fail to attract buying interest. The index has today moved below the short term 10 day moving average.
In contrast, the NASDAQ remains the leading beacon of global equities as money continues to chase large cap tech and healthcare. The chart below of the NASDAQ index shows the buying strength with the short -term price action well above the 10 day average.
We continue to reference the NASDAQ as our preferred benchmark for investor confidence and will wait for a break below the 10 day average before hedging portfolios.