Market Comments. Monday 24/1/2011

You don't have to be Einstein to see the importance of the 4800 area on the XJO (ASX200) chart.

The XJO and the XAO (ASX All Ordinaries) are the two broad measures of the "market".

The fact that the XJO broke above 4800 and then fell back is a bearish sign.

Still - the medium term trend is UP. It remains intact while the oblique uptrend line is unbroken.

But - this market looks shakey - especially is you take in the comments I made earlier in the evening "Initial Comments".

Of course, the market can do anything it wants. It doesn't have to do anything.

But - for mine - I wouldn't be taking long positions right now.

Good luck

Red