Market Comment Updated 23/10/2203
Today we finally get the start of the long awaited retracement. The
market had gone above, and was held up by the convergence quarterly R1
(dashed red line) and monthly R2 (top dotted purple line). Today the
market dropped below this level in a reasonably nasty selloff. In doing so
it has of course flipped the Dynamic 3-day support over to 3 day
resistance (solid red line) as well as flipping the 3 day hi-lo activator.
This type of move normally results in a 2 day stalling pattern, marking
time before the market continues lower if indeed it is to do so.
Possible areas of support are 3247, monthly R1 @ 3225 and trendline
support @ around 3200. Below that and we have more than just a retracement
and the market will start looking a bit shakey.
My opinion is that we have seen all the upside we are going to see for
the month of October and the market should retrace somewhat. Looking
forward to the new month to set new targets.
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