As mentioned in the previous post, the 50-Leaders were down -1.1%, in line with the general market.The current rise and fall back of the 50-Leaders has been terribly orderly. No real indication of panic buying or selling. The 50-Leaders are still not over sold.
Although the uptrend line from early February has been broken to the down side, the MACD is still above its signal line.
The XAO and XFL are getting close to support provided by the lows in October an November.
So a scenario suggested in the previous post of a drop'n'pop tomorrow, could see the general market test the support level just under 4600 on the XAO (and XFL) and then bounce. If that happens, then a test of the recent highs around 4730 on the XAO seems likely.
Basically - this looks like a non-trending market. We can expect further range trading. And the short term swing traders will get cut to pieces.
Well - that's a good story. We'll see how it pans out.
If a clear break below the 4600 area occurs - then all bets are off - and we're then looking at another test of 4500.
Cheers
Red
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