Figure it out...... - Wednesday, page-15

Below is the Chart, as of COB yesterday, of the Financials x-Property. This sector makes up about 40% of the Australian market. What happens to it largely determines the direction of the XJO.



Major Horizontal S/R lies at 7074.86. XXJ today (as at the time of writing) 7072.5. So it is sitting right at Support.

This Index at COB yesterday was extremely oversold with an RSI.9 at 21.7. So it is highly likely well below that level now. Below 20 on a major index - and the probabilities of a bounce are very high.

What happens after that bounce will be crucial. Another attack on that Support line is likely to push the XXJ into bear territory. But - it might just head straight back up to the top of the recent range.

Redbacka