For the XAO Indicator to turn blue again quickly the All Ords will need to rally sharply back to around 5000 although as time passes, the price level at which the indicator will turn blue will fall. At this stage I am not expecting the indicator to turn blue anytime soon. This does not of course mean the market cannot maintain a upward slope because it can just don't expect the XAO Indicator to be supporting that move with blue bars.
The XAO Indicator is not a 'predictive' indicator - it does not tell us what is going to happen - it can only tell us what is happening right now. More often than not, what is happening right now can last for a while. That's what I like about this indicator - it keeps me 'in the moment'. Sometimes the 'moments' change quickly like they did in August 2010. More often though the moments last for months just like the last one from September '10 to March '11. During such moments, good profits can be made. During the rare, long red moments, the indicator keeps you out of the market thus avoiding a 'GFC type' event. Here's today's chart which shows the 50% retracement level currently providing support.
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