Today's move down was no mickey mouse affair. Volume was high - the highest since the opex days back in September - and today's trading was not influenced by opex which invariably shows an increase in volume.
Go - figure. Today was a major distribution day.
Does that mean we've changed gears into reverse? Maybe - but we won't know whether this is a trend change to the sideways or a major trend reversal to the down side for a few days yet.
The area just under 4600 looks like strong support. If that breaks we might be looking at a major trend down for some weeks. Until that happens - keep the powder dry.
But - I won't be buying into this market until direction becomes clearer.
Today's action looked decisive - a major distribution day right at the high of the recent run-up.
This is no time for sackcloth and ashes - although such a time might not be far away.
The stock market is always dynamic.
The current short term trend is down.
The medium term and long term trends are still holding to the bullish side.
Pullbacks are an inevitable and healthy part of the market structure.
Short-term trends can, however, morph into medium term and long term trends.
Caution is required.
I may have a further update when I get time to look at the weekly and monthly charts.
Cheers
Red
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