--------------------------------------------------------------------------------------------------------------------------------------------- Good Morning and Welcome to the XJO Thursday Thread
The XJO initially dipped strongly lower during the morning, before staging a decent recovery to finally close only modestly lower on Wednesday.
Volume (value traded) was reduced, but remained above the average line, showing that there is still good support in the market.
Not much information is being given away at this level........with supply and demand appearing very finely balanced.
The line I have drawn across 5691.9 has had two alternate closes above, and two alternate closes below it now, and interestingly the first two are a reasonable mirror image of each other (narrow spread upbar on high volume/narrow spread downbar on low volume). Similarly with the next two bars, a wider spread upbar, that made a higher high on above average volume, that had its top knocked off by supply, followed by a wide'ish spread downbar, that made a lower low on reduced volume, that recovered nicely as demand arrived. And to continue with the finely balanced thing.... the narrow spread up bar on high volume last Friday, has not had a close above its high, nor a close below its low.
I would expect this fine balance to be broken soon, with some certainty of direction making itself felt, and to be honest I consider the recent background has more bullish sentiment than bearish behind it, so I continue to lean towards the upside as this thing eventually resolves itself.
That said, I usually try to put up a brief opposing view (as that point of view cannot be completely ignored), which would suggest price has begun to fail at the 5691.9 line on Wednesday, & the three prior bars were the setting up of short positions, before the Index breaks down again.
(20min delay)