The broad market (XAO) is struggling and into the 7th week of a pullback from the double top high on April 12th (amber arrows) and May 1st. The pullback is in a clear channel has taken out the March 22nd low with the next possibility being the February 7th low of 5635.
If the SP continues to fall to the lower channel it looks like there will be a close correlation between that and the February 7th low (green arrows) and this could bring some buyers back into the market around this level.
Futures are up today and a bounce after a couple of bearish days could be on. However with the banks, miners and oilers under pressure who knows. AJX held up well yesterday which it often tends to do on wobbly market days and I would like to think that the punters might be looking to aletrnatives after being beaten up at the top end. Still volumes are low in the small caps so it is difficult to be certain until interest picks up in the sector.
XAO Daily
TA discussion, page-5123
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