Today convincingly confirmed the sell signal I noted yesterday.XAO broke well below the 4400 level on higher than average volume for the past 50 Days.
The Price Weighted On Balance Volume has broken down from its symmetrical triangle.
The A/D Line has completed a back test of resistance and yesterday broke below its uptrend line. It really needs to break below the recent low to form an M top - but one more day down would do that convincingly.
I still have a lot of analysis to do tonight, but I doubt I'll see anything to change my mind about the current situation.
Significant failures of support occurred today in the general market. A test of the July low at 4200 looks highly likely. A break below there would be serious. Given the seasonal pattern with September coming up, that looks likely.
But - on the stock market - anything can happen. Continue to watch action and significant indicators. And do your own research.
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