The XAO finished down -0.7% today after being down -1.3% early in the day. A nice recovery without being a spectacular reversal day.
The Advance/Decline Ratio (middle chart above) nudged down almost to the Extreme Low today. As a contrarian sentiment indicator this suggests we may be up tomorrow. The fact that we did see some buying after the initial drop today lends support to the idea we may see an up day tomorrow. Today was also the fourth day down in a row. That followed four days up in a row. The bearish move hasn't been able to reclaim all of the previous bullish move - so the bulls have a slight win on that score.
On the other side of the coin. The Advance/Decline Line (bottom chart) has formed a small double top. This is a negative divergence from the Index which hasn't been able to break below the low of eight days ago. The Advance/Decline Line often leads the market lower.
Other technical indicators on the A/D Line need to be broken for a bearish confirmation (e.g., a break below the 65-Day SMA).
I'm expecting a more positive day tomorrow. What happens after that is another story.
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