The market had a strong up day today with the XAO up +1.6%.

Looking at the momentum indicators - momentum has slowed. The MACD and RSI are going sideways. ADX has fallen from a trending signal to a level between trending and non-trending (about 25).

Looking at a weekly chart of the XAO, we can see that the Slow Stochastic has now dropped below its signal line and below 80.

That doesn't mean this market is a "sell", just that momentum is now much slower than earlier in the uptrend.

It could be a signal that the market is about to reverse, but not necessarily. It could be in a consolidation pattern.

Looking at the Slow Stochastic on the weekly chart - we can see that it each retracement has been making higher and higher lows. That's the sign of a strong market.

Until that sequence is broken - (a lower low) - this market remains bullish.

What's likely to happen tomorrow? Dunno - I'm not really into that sort of stuff. But when I look at my short term indicators - they seem overbought. I'm not expecting any great surge in the near future - just more of the same. Down a bit, up a bit more.

Cheers

Red