The Advance/Decline Line is congruent with the XAO Chart. Until that uptrend line is broken to the down side, we must presume the trend is still up.The Advance/Decline Thrust is now showing a clear divergence from the A/D Line. However, no lower lower has been recorded on the A/D Thrust chart - so we cannot say we have a down trend. (Higher lows are marked by horizontal red lines. A Lower Low will be recorded when the highest horizontal red line is broken to the down side.) Until a lower low is recorded we must presume the trend of the A/D Line is still up.
This will be my last blog for a few days. After that blogs will appear at irregular intervals. If I see anything serious occurring in the market (IMHO) I'll endeavour to get a blog up asap.
At the moment, it's steady as she goes - but this market does look like it's going through a topping process. Any pull back might just be minor - but it could be as far as the 4500 area on the XAO. That would be a worst case scenario at this stage.
If 4500 breaks - then IMHO long term holders might consider taking some off the table.
Best of Luck
Red
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