Escargot Thursday, page-2

XJO was flat today, down -0.16%.



Today’s action takes the chart clearly below horizontal resistance and the 20-Day MA.  That may cause problems for any rebound.

Some sort of rebound seems likely given the oversold RSI(5).

While the short-term trend channel remains down – stay with the trend.

Any rallies are probably an opportunity to sell out of the market.

The only sectors showing strength today were defensives:

• Utilities +1.2%,
• Telecoms +1.3%,
• Property Trusts +1.7%.

That’s impressive – unless you’re bullish on risk assets.