The market was down today for the eighth day. Probably time for a breather.The XAO finished at 4263, down -1.43%.
Just looking at the indicators on the chart above, we can see that the Slow Stochastic is still heading up showing a small positive divergence from the price. So - momentum is slowing. Significant positive divergences exist on the Daily RSI and Daily MACD from the price chart. Another pointer to slowing momentum.
The ratio of UpVol/DownVol today was par, 1:1.
The ratio of Advancers/Decliners today was just under par, 0.93:1.
Small Ordinaries Index today was down -1.0%, while the 20-Leaders Index was down -1.7%.
Amongst the S&P Industry Sectors, the three worst performers were:
Information Technology, -2.6%
Telecommunications, -2.1%
Consumer Staples, -2.0%
IT is an inconsequential part of the market. The other two are both defensive sectors.
So, the internals suggest much greater strength than evident in the raw numbers, and some risk taking has come back into the market.
We can't be far off a bottom.
Can a sustainable rally be in the offing without a capitulation day of huge down volume. Dunno. Volume is still light.
Perhaps we're in for a short move up and then a retest of these lows. We might even go below these lows in a capitulation move. But that's all just speculation.
Keep watching the market and the indices for signs of a turn-around. The first one would be a rise of the Slow Stochastic above 20.
Cheers
Red
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