Hi JMW,Of course, 50/100 moving averages are important lines.Do...

Hi JMW,

Of course, 50/100 moving averages are important lines.

Do you really think I don't look at them?

They represent significant resistance above the current level.

Other significant resistances exist above the current level.

If (and I say IF) this market is to go much higher in the intermediate time frame - it has much work to do.

A positive x-over of the daily MACD would be a marker. A positive x-over of the current down trend line would be a marker. A positive x-over on the weekly Slow Stochastic would be a market. A positive x-over of the weekly MACD would be a market.

These are all things which need to occur - many other things also need to occur.

There is an important lateral resistance area ahead which needs to be overcome before we reach the 50 and 100 day moving averages. This currently lies at around 6400 on the XAO.

I could go on and on.

But I won't bother.


There's a lot of work ahead, and there are a lot of significant fundamental data which suggests the task will be difficult.

The market may fail at any one of those markers and continue on its way down. It may overcome them.

The Bullish Percent Sentiment is just one item which suggests that the task ahead is going to be difficult.

I'll let the market lead me.

However, if the daily MACD gets a positive x-over and the down trend line from early December (currently about 6550 on the XAO) is cross above - then I think we have a good chance of an intermediate rally which will head significantly higher.

But boy - there's a lot of work ahead.

Cheers
Red