A short time ago I mentioned in the blog how the RSI.2 can signal a short term overbought status on the XAO. When these occur we can expect a day or two of retracement - or, it can be the start of something bigger such as early November. Of additional concern is the negative divergence on the CCI.14 and the break below 100. Of additional concern is the status of the Slow Stochastic (5,5). This indicator has been up in the "overbought" zone (above 80) since early December. It has now broken below its signal line. A break below 80 would probably suggest a few days of downward movement.
4800 could act as support. If the XAO bounces there, the Santa Rally might be "on". A break below 4800 and we may have to wait a longer period of time to fill the Xmas socks.
Cheers
Red
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