Curmudgeons Friday, page-8

Hoopty, that's the nature of key resistance levels. The 5000 level is key resistance atm so its going to take effort to break through it. A look at the (IG) hourly chart shows how many times this month we have seen this level tested (purple zone). The good news is when a level has been tested several times then you would expect when it gives the move will be swift and strong. But until it breaks its low probability to bet against it.



The positive I see in the hourly above is that it is starting to shape up like an ascending triangle, so the probability is increasing (imo) for it to break to the upside of the 5000 level.

Last night I posted a 5 min chart showing that flag formation on the 5 min chart, and it did get to 5026 as you say overnight, only to fall back below 5000 creating a false break of the resistance level.

Interestingly though, while there is never an exact correlation between indicies, that high occurred when the DJI peaked around 1:30am, but while the DJI (1st 5min chart below) pulled back and then eventually received to within 30% of the high, the IG price on the XJO (2nd 5min chart below) did stay relatively flat and only regained to within 55% of the high. This suggests to me that the IG OOH price leaves some upside potential on the table and with the DJI up 132 pts I expect another attempt this morning to crack that 5000 resistance:





Cheers, Sharks