Intra-Day Chart 15/3/2011

Above is a 5-Day Chart of the XAO with 15-Minute Intervals.

The chart has been unable to crawl back above the 50-Period Moving Average. It almost made it late on Monday and early on Tuesday. But then fell away again. That's now the "hill" the chart must climb over before it can start to make it to the upside again.

The weakness of the market was confirmed by the MACD which was unable to climb above the Zero line. Almost - but didn't quite make it.

When those two criteria are fulfilled - the market might see a bit of upside. And the swing traders will be back in action.

I think the psychology of this market has now changed from "buy the dips" to "sell the rallies".

Good luck

Red