XJO Daily ChartI last posted this chart with its technical...

XJO Daily Chart

I last posted this chart with its technical support/resistance line (the middle line) on 18th January.

Today, the line failed to act as a support line. Technically, this is a signal that a new downwards trend has begun.

I had expected that the low interest rate rise earlier this week would be fundamentally bullish for the XJO, after allowing for the usual dip that happens automatically immediately after every rate rise. But the XJO seems to have decided otherwise. Fundamentally, perhaps the XJO is just blindly following USA markets, perhaps market. sentiment is at a turning point here and in the USA, perhaps markets are overbought. Who knows. Who cares. Technically, the signal is clear.

Could be over 200 points to drop down to the lower support line, if it holds.