Today's action didn't provide the follow-through selling I'd expect after Friday's down day. That suggests that Friday may have been a furphy.Trading today looked like it was dominated by professionals taking advantage of below average volume to push the market around and make profits on the intra-day trades.
As expected the market was up early, given the strong night on Wall Street. In the second hour of trade, the market was then pushed well below the closing price of last Friday - taking out plenty of stops.
In the third hour - the market rebounded after gathering up all that stock unloaded by the nervous nellies in the first and second hour. It ended just in the black on the final bell.
That looks to me very much like a day dominated by professional day-traders and market-makers (who can see both sides of the market and know where the stops are).
The major indicators on the intra-day chart (see top chart) still didn't finish strongly enough to have a bullish profile.
- The MACD remains below its signal line and below zero
- The RSI remains below its mid-line
- The Williams %R remains below its mid-line.
This market remains vulnerable to a sell-off. Key support remains at 4830 on the XAO Index.
I still have a lot of analysis to do before calling it a day. If I see something worth commenting on, I'll put up another post later in the evening. Otherwise - that's all for now.
Good luck
Red
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