XJO down heavily again. Down -1.42%. [IMG] Yesterday, I was...

XJO down heavily again.  Down -1.42%.



Yesterday, I was hoping for a big bounce today, which would have been a buying opportunity.  But it was not to be.  The downtrend asserted itself, once again.

We're now getting to the serious end of the business.  The market is oversold.  RSI is below 30.  CCI is below -200.  Stochastic is also below the oversold line of 20.

We might have to get down to the oblique uptrend line shown on the chart before we get some relief.
Volume today was a bit above average - but not enough yet to suggest we've seen a washout.

MACD Histogram is showing the possibility of a positive divergence.  So if we do go a bit lower, and then bounce, we could be in for a tradable rally to the upside. A big down day on very high volume might clinch the deal.

Here's the Financial Sector Chart:



It's not remarkably different from the XJO.  So we'll just have to wait and see.

RB