The market was well down today almost 1.%. The XAO has now broken below the trading range which has dominated the intra-day chart for some days.The MACD is negative but still well above the Zero Line. The RSI is sitting on the mid-line - the demarcation between short term bullish and bearish. Williams %R is registering short-term oversold.
The market had a distinctly defensive stance with the 50 Leaders down -0.6% while the Small Ordinaries was down -1.8%. The best performing sector was a defensive sector (Telecommunications) which scored a +1.2%. (Eat your heart out, Futures Fund.)
The chart below shows the Advance/Decline Ratio has reached a level where a short term bounce is likely. I still think the market still has some way to go before a definite turn-around. So a bounce might just be enough to suck a few bulls back into the market, just in time to bash them again. But - for the time being - I'll be surprised if the market goes below 4800. So there's probably more chop to come. And both bulls and bears will get sliced up.
I may have some more comments later tonight.
Cheers
Red
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