ALSI Update

Right well the ALSI has continued on its downward trend after trying to test the 17800 level on Monday.

The end of day outlook on my chart for the week is still playing the negative card. The Stochastic and RSI indicators on the short term are signalling an oversold position on the ALSI at the moment.

16871 is the nearest support level and if this is broken we should see a retest to the level before the market breaks down in earnest.

The support of the Monday and Tuesday trades now become the resistance of the rest of the week unless broken. This is the 17231 level.

Be wary at this level as many of the main sectors and indices have broken down through their most recent support levels which until this week had been fairly robust. There may well be a retest of these support levels -now resistance- but be aware not to be caught out thinking that this is a new rally...

It is likely, in my opinion, that we will test the old support levels - now resistance - before heading south again. But the trick here is to wait for the market to tell us where it is going.

But it is important to watch resources and financials sectors to get a better indication of the ALSI's direction. When both Fini and Resi are finding the same direction, then the ALSI rockets....

Just bear in mind that the end of day chart is in oversold territory.


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