Our market is looking a little oversold at present levels. A bounce back to 3050 on the spi can be expected.

I have found the market much tougher to forecast this year. We seem to be going sideways in a fairly narrow band currently.

There is a potential double top in place now at 3165. This will be confirmed if the May low of 2848 breaks. If this happens, the market will move lower for the remainder of the year. Any break lower than 2848 (hasn't happened yet) makes a further move lower to 2531 highly likely, ie 2848 minus 317. (3165 less 2848 = 317) Professional traders will be watching this closely and you will see a heavy sell off, on any move below 2848.

Bond yields in most places in the western world hit new highs on the day of the eclipse, August 11th. The stock market is unlikely to move to new highs with bond yields at 6 1/2%.

This week I have struggled to find stocks worth buying. Many seem overpriced in relation to yield. Three stocks though do look strong and worthy of a look, Hardie, Fosters and Pacifica. All three have increasing earnings.

The gold sector also looks like bouncing off recent historic lows. Watch Newcrest, Normandy and Lihir.