The market (XAO) was down 0.81% today. The after market action accounted for about half of that. The above chart is of the 50-Leaders which was down over 1%.Taking the indicators at face value, this market is now in trouble. The MACD has crossed below its signal line. The RSI is below 50. The DMI- has crossed above the DMI+and the ADX has changed direction. Up-trend line broken to the downside. All suggests a new down trend.
The 50-Leaders ended just below the intra-day low set on Wednesday. But it was a marginal break. So that might give the bulls some hope.
Of more significance is the configuration of today's bar. It finished down at the lows of the day. Such events, especially on low volume, are often suspect. We only have to look back at the bar from eight days ago to see what a gay deceiver it can be. Today's bar is an almost carbon copy of that day which turned around and reversed the next day.
So we need to see what happens when the market reopens in the New Year to see if today's action is as bearish as it first seems.
Happy New Year
And good luck for 2011
Red
Happy New Year Redbacka
ReplyDeleteYer a gem :)
;)