Our market opened with gains of some 35 points on the XJO only to give them up by about 11.00am. A brief rally ensued into lunch time and from then the market faded badly, travelling lower throughout the afternoon to close on its lows. The XJO ended the day down 33.2 points or 0.7% and has broken the support zone previously mentioned in these pages by a whisker. At present it does not look like holding these levels, despite being deeply oversold. Certainly there are differences to the last time these levels were met in mid-March. Volume and price action display a lack of buyers stepping in so far and right at the moment hard to see a rally with the same vigor as from the March lows. Still, things can change quickly. We are hesitant to add more short trades at present with the market in an oversold position and see it prudent to manage what we have. The odd long trade is presenting but they have been failing so aggressive traders tackle these with care.

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