Today the XJO (ASX200) finished at 4857, down -0.88%. Well - I don't need to tell you that things don't look too flash>:) OMG! Two days down and we think the world has ended. >:)
So how bad is it?
Here's the negative side:
- Intermediate term resistance held on Monday.
- Major support broken today. (See blue line on chart above.)
- MACD Histogram broken below Zero.
- Williams %R below mid-line.
- RSI close to breaking below mid-line.
- Directional Movement Histogram (not shown on chart) broken below Zero.
- Index is significantly below the 13-Day Moving Average now at 4904.
What does that mean? Simply - we're in a short term down trend.
What's the good news?
- Index is above the Super Trend Line
- Index remains in a long-term up-trend.
- The Index remains above the 65-Day Moving Average currently at 4764
The buy-the-dip crowd are salivating - but they might have to wait a while longer.
Small Ordinaries today was down -1.3%. Worse than the XJO at -0.88%
Until we see that downtrend line on the XSO:XJO ratio chart (lowest pane) broken to the upside, I think we'll see further weakness in this market.
Good luck
Red
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