Weird day today.The broad market indicator was negative.The...

Weird day today.

The broad market indicator was negative.

The UpVol/DownVol was green at lunch time but strongly red at the end of the day at 0.42. That suggests institutional selling.

But what got creamed? Defensives. The two worst performing industry sectors were Utilities and Telecoms. Then came Materials, and then another defensive sector, Consumer Staples.

I'm not sure what to think of it - but it looks more bullish than bearish.

The market is grossly oversold. On my Triple Bollinger Band chart (50-Day SMA middle line) the XAO is now down at the Sell Short Line (One standard deviation below the mid-line). It also got down to this level (just below) in July and then recovered.

If this market doesn't recover here back above the One-SD line, then it's goodnight from me, and goodnight from him and goodnight nurse as well.

I think we'll get a bounce here - but there won't be a lot in it before the next move down - and a decisive break of the sell short line. And if that happens ...

Cheers
Red