The XAO was down 0.7% today. And remains in 'do not buy' territory.The 50Leaders/Small Ordinaries continued to show risk aversion. 50Leaders down 0.6% while the Small Ordinaries down 1.2%.
We're probably coming to a short term bottom. Volume today was less than one billion shares traded, the first time in over four months. So there wasn't a lot of conviction selling today after increased volume on Friday.
The % of the 50Leaders above the 10-DaySMA has now dropped to 12% - an area where reversals often occur. 50Leaders above the 50Day and 150Day are also nearing the oversold level - but not quite there.
In the medium term, this market is looking bearish. Today was the second day below the supporting line of the recent uptrending channel. A two day break is usually evidence of a decisive break.
So any bounce will probably be short-lived.
As always - this is just my opinion - do your own research - and make up your own mind. Remember - I'm just a pixilatted chartist. :)
Cheers
Red
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