All Ords - Will it break through or break down?

The XAO Indicator is still positive, although it has gone sideways for the past two weeks. Looks to me as though it can't make up its mind - to break through or break down. Personally I am becoming more confident that it will ultimately continue its upward move. On the other hand, that's a typical emotion to have near the top of the market. Let's review the resistance we are up against right now. First, the current resistance falls on a 61.8% retracement of the move down from the April high to the May low. Secondly, there's that long downward trendline connecting the November 2007 high and the April 2010 high that the market has to get through to move higher. Thirdly, the 4700 to 4750 resistance level I have previously mentioned is also a resistance zone highlighted by the Advanced Get software. Oh and one another thing, an astrologer wrote recently says that by mid-October the stockmarket will be back in the headlines again . . .  well, we'll see. Here's an updated chart. By the way, if the market breaks through the resistance, there's a good chance it will break hard and it is not difficult to see the market running to 5000 in quick time.

All Ords update

The XAO Indicator turned blue on Sept 7 as expected. This is now the 6th change in the indicator this year. That is a record. Old traders will tell you that a long period of indecision in the market will often be followed by a dramatic move. The question is which direction will that move take? Well, I have my suspicions but investing and trading should not be a guessing game. Personally I will be following the XAO Indicator. While it is blue, I will be long, when it turns red I will be taking precautions. Here's today's chart. The downsloping line is a trendline connecting the Nov 07 high with the April 10 high. The horizontal line (4,735) is the predicted point at which the downsloping line might intersect the All Ords.

Is XAO headed higher? For how long?

Despite the recent rally, the XAO Indicator has yet to change to blue but it is less than 5 points away. 4,619 is the level at which it will change and that could come as early as tomorrow. But if it does change, how long will it last? As you can see from the August 28 post, September is historically the worst month for the Dow and our market will follow the Dow. Today's chart shows the downsloping trend line drawn by connecting the high of Nov 1, 2007 and the high of April 15, 2010. That should create some resistance for the All Ords between 4,700 and 4,750 and that should come in the next week to ten days just in time for a September high.