Another solid down day - the XAO -1.16%. The XAO finished at 4676.9.On the Indicators, the MACD is now below Zero and the RSI is sitting on 40. That's often a level the market reverses at - but I wouldn't bet on it just yet.
Signs of life continue to show on the Slow Stochastic, but we need more strength than that to take this patient off life support.
On the weekly chart, the Slow Stochastic has dropped down to the 30 level - that's lowish - but could go much lower. No sign yet of turning around.
OK. So what's the good news?
New 20-Day Lows on the 50-Leaders has now hit 12. That's the highest this number has been since 25-8-2010. That date marked the low point in the downtrend in August. So, if this is a normal retracement, we're likely to see the market turn around in the next couple of days.
If this is something more than a normal retracement - we could be looking at a lot lower - to test the 4600 area.
Stocks with an RSI below 30 today were:
- ANZ
- NAB
- WOW
Stocks with an RSI below 30 often rebound to the upside. Watch. (No guarantees.)
Stocks with an RSI above 70 today were:
- AXA (under a take-over offer)
So - the odds are tilting a little to the rebound side.
Cheers
Red
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