I did NOT like yesterday's action. BHP in particular went straight to resistance and bounced off it, so I was forced to clear my long.
The problem is that it remains unclear at this stage whether the market action 8-23 Jan is a pullback before the second part of a rally, or the first wave down of a final fall to the vicinity of the 2003 low. I will post again when this becomes more obvious.
At the moment XAO is on the bottom of the channel from 1987 so any further falls would be ominous. The weekly and monthly index is heavily oversold - more so than at any time for which I have records.
