I suggested yesterday that today might be an up day. Well, we were up early - but then it was all down hill. The XAO finished down -0.64%.
Nothing really dramatic happened. Today continued the slow grind lower of the previous four days. Unless the bears can get in a gut wrenching drop, this retracement is just that.
We've had five days down in a row. That's starting to get to the unusual stage.
However, from the longer term perspective - the long sideways consolidation is still in place.
Even if the market ekes out a gain tomorrow (highly likely after five days down) nothing has changed - we're still in a sideways consolidation. The short term players are having a ball playing these four/five day swings. But it is of no use to medium to long term investors.
Patience is required. A definitive direction will be determined soon. The longer the wait, the bigger the movement. Whether that will be up or down is unknown.
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