Paperclip Tuesday, page-3

XJO today down -0.48%



The XJO has now come down to the 50-Day MA.  I've marked on the chart recent events when the XJO changed direction or paused at the 50-Day MA.

On the chart I've shown a pull-back off a high early 2018.  The current pull-back is of similar magnitude.
After the April pull-back, the XJO rose then fell into a blue-funk.

With the indicators oversold, I'm looking towards a similar rebound this time.  Whether or not we get a "blue-funk" after that is still to be seen.

In the Weekly Smorgasbord, I drew attention to the recent positive structural shift in Property in our market.  XPJ continued to improve today despite the broad market negative result.



XPJ is overbought and close to resistance.  Look to "buy the dip" on any pull-back.

XEJ was the weakest sector last week, and the downside move accelerated today.



Today's wide-range day coming at the 50-Day MA might suggest a rebound is possible. Indicators are oversold adding to the rebound idea.  This is a trading idea.  Any rebound is likely to be a counter-trend rally.

RB