I've done all sorts of number crunching tonight trying to discern what direction the market might take.In the end, I'm still left with a simple chart of market action.
A sideways consolidation.
Today was remarkable action. I said a couple of days ago that near term direction would be decided by the high of last Wednesday and the low of last Thursday.
The high on the XAO last Wednesday was 4710.5. The high today was 4710.
I'll leave that with you to ponder on.
Today's action leaves us with two possibilities:
- a break above 4710.5 - and further upside
- a break below 4648.9 - and a double top - with much further downside.
I really don't put much faith in precise points on charts. But today was simply ... incredible.
Anyway - we wait for confirmation of market direction.
The market will show us the way.
Cheers
Red
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