The Force Index MAs are now giving early sell signals.There was a negative divergence on the 5-Day MA (Yellow Line) which has now broken below the zero line.
The 21-Day MA (green line) has now broken below its uptrend line - that's an early sell signal. It would be confirmed by the 13-Day MA (Orange line) breaking below the zero line.
A sell short signal would be given if the 21-Day MA (green line) falls below the zero line.
On the one-hour intra-day chart, the Indicators in the lower pane are all negative. MACD below Zero and both RSI and Williams %R below their mid-lines.
The XAO today finished right at recent support of 4800 (3999.4 to be exact) and also on the 65-period moving average. So there is some hope for a rebound tomorrow. But - a break low should see the index continue much lower.
Volume the past two days has also been on the low side - so the selling has not been with great conviction.
Let's see what tomorrow brings.
If the market is down in the first hour tomorrow on better than recent volume, I think we can say goodbye to this recent rally from early February.
You may remember from my Weekly Report, that the XAO was at a significant confluence of resistance (horizontal and diagonal). It looks like that resistance level is playing out to the negative side.
Cheers
Red
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