I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Tuesday, September 13, 2011

XAO Indicator back to red

That didn't last long, after turning blue on 1 September, the XAO Indicator is back to red. Meanwhile the Dow is nearing an important support zone (10,800 to 10,500). If that zone doesn't hold we could see some some sharp falls because in the near term, the next support levels are at around 9,000 on the Dow. But the $64 question is whether or not the current support zone will hold. Of course nobody knows but I continue to believe that the August lows (or thereabouts) will hold - at least in the near term. This means around 10,500  on the Dow and between 3,800 and 3,700 on the All Ords. If we don't hold those levels then in all likelihood we will test the GFC lows and possibly go beyond even those lows over time.

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