XAO Short Term Update

The XAO may have found a bottom at last. The next several trading days should provide additional insight on this assessment, however, a break out of the channel line (shown) needs to occur next.

In addition, the 5000 level should ideally be broken in shorter time than the second a-b-c leg took to form eg less than 14 days. This would provide additional confirmation that the next leg up may well be underway.

Ready for a turn on the XAO?

A short update on the XAO now that the level is the last post was hit today. A turn is certainly a strong contender but must satisfy the rules as described below...

XAO at a new intermediate term high, well for a few days

The XAO has taken almost exactly 12 months to break (only just) the intermediate term high set in April 2010. This is good news and casts some positive light on the index for the short/medium term even though the high was short lived.

In the last post, there was a view that the index would be correcting in the short term down to support - at around the 4900 level. This has taken place and now remains to be seen if the 3 wave declined finishes the 'X' wave or will a more complex correction unfold - perhaps a triangle?

With the break of the intermediate high, a wave '2' alternate count is now invalidated - this now helps us focus on the primary count as described here.