Week End Summary. 21/3/2010

I'm keeping it simple this weekend as I'm pressed for time.

The above daily chart is of the XAO for one year.

Negative divergences exist on the CCI and the MACD Histogram.

If this market is to have a significant pull-back - perhaps to the February Low, then look for:

1. A break by the RSI below its trend line (top pane).
2. A break by the stock chart below its trend line (main pane).
3. A break by the MACD Histogram below Zero.
4. A break by the CCI below 100.

I'm expecting these to occur coincidentally within the coming week. Perhaps as early as Monday or Tuesday.

We shall see.

Cheers

Red