Another low-volume down day for the XAO. Technical damage was done to the MACD with it crossing below its signal line - suggesting the selling is not done yet.Punters seem to have stepped back from the market waiting for some buying to enter and hoping to follow the lead.
Although the market is now oversold, and due for a bounce, the situation is now set up for some big players to really hit the sell button, and possibly set off a panic sell-off.
The Advance/Decline Line (see second chart above) is now back to long-term support. A break below that would be a serious blow to market perceptions. It is one of the few indicators which hasn't broken below the lateOct/earlyNov 09 low.
The Advance/Decline Thrust chart is now down to the 0.4 area. This area is often where the market finds support. But you'll notice that it sometimes takes a week or two to climb back above that area. So we could be in for more selling yet.
Just when you get most negative - that's the time the market turns around. Are we there yet?.
"I Dunno," as my eldest granddaughter frequently says.
Watch the market indicators. Watch for a bullish engulfing candle. Then we might have a turnaround.
Woolworths - gave a "sell" signal today dropping below the 150-Day Moving Average and the RSI dropping below the mid-line.
Gold
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