XJO (ASX200) -2.9%XTL (Twenty Leaders) -2.7%XFL (Fifty Leaders)...

XJO (ASX200) -2.9%
XTL (Twenty Leaders) -2.7%
XFL (Fifty Leaders) -2.8%
XFJ (Financials) -2.8%
XMJ (Materials) -3.6%
Energy -2.5%
XSO (Small Ordinaries) -3.2%

Another big day down with more panic selling. The volume today was about 150% of the 50-Day Average ? but just 80% of the previous day?s selling. So the volume is abating a little. The measured move down on the chart above (two big black arrows) suggests we?re close to a finale ? which could be around the 3950 mark. The XJO finished today at 3986.1. That?s getting close.

INDICATORS:

RSI.9: 16. That?s oversold but still not as low as the March, 2011 retracement.
MACD Histogram below Zero. Negative.
MACD below the Zero line. Negative.
Stochastic: 1.3. Oversold. It can?t go any lower than zero.
CCI.14: -216.3. Extremely oversold. That is a slight move up from Friday?s reading.

A bear market is usually considered to be in operation after a 20% loss from the recent highs. High on 11 April, 2011 on the XJO was 4976.4. The low today was 3982.8. Loss = 19.97%.

The market has gone from oversold to ?extremely, extremely, extremely? oversold.

I often preach ? ?Don?t pre-empt the market. But I was tempted, again, today. :)

Good luck

Redb