The teddy bears had a picnic today. The XAO was down 1.6% on below average volume. The Miners, Energy and Gold were all particularly hit hard today. The Gold Mining sector was down over -3% and Energy was down almost -3%.
The market is getting close to a bottom. Low enough to take a punt on? I wouldn't think so.
Until the Slow Stochastic moves back above its signal line and the 20 level, this market is, to my mind, a stand aside and watch market.
The chart above shows the big down day today. Tomorrow may well be up - as a reaction to the negativity of today.
What happens after that is important.
The market is still above the 20-Day low. It would be nice to see the market drop to that level, and then bounce.
I think we'll see more downside before a reversal up. But that's just speculation on my part. Watch the charts and follow the guidance provided by the indicators.
Cheers
Red
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