XJO Dead Cat Bounce or ?Just an observation:
Everytime the Australian consumer confidence index has fallen below 80 into severe pessimism the XJO has corrected atleast 30% from peak to trough.
This has been the case the last 4 times over a 40 year period.
Currently XJO has a had a decent correction but not even close to 30%.
Looks highly probable that we are headed down below 80 in the next few months. Suggesting we could be in a dead cat bounce environment on the XJO.
Also noted the 10 month MA has also dipped under the 3O month MA each time and currently sits well above, which suggests possibly another leg down early next year.