VCR Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread
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News for Today (AEST)



The XJO closed sharply lower on Tuesday, where spread was quite wide, and volume was only a little above average.   The very wide spread on roughly average volume illustrates the severe lack of demand in the market right now (compared to the supply).
There have been two very widespread downbars recently, one on the 22nd March, and the other on 18th May, both of which actually turned out to be climactic to some degree, as price moved somewhat higher straight after them, or very soon after.   Of those two, Tuesday's bar more resembles the 22nd March bar.  
Interestingly, it is not very common that the days open was the high, and the close was the low, as it was on Tuesday.
All that said, this bar when put into context with the overall chart, and in particular into context with the horizontal support and resistance levels, it appears to show that price has clearly broken down.  If price cannot regain the breakdown line pretty much immediately (which is unlikely, but slightly possible), the Index is likely to move down and test the strength of the older line below @5604.3.




Good Trading and Investing