Indices 13/06, page-427

Big week ahead with a lot pain across almost all markets over the last week.

The head and shoulders pattern played out as expected from previous posts with the right shoulder dropping at an alarming rate.

Was expecting a bounce around the 6800 mark however MMs used the long weekend as a shortcut past the HVNs.

Aussie 200 is currently left in no mans land with minimal inventory so a move in either direction could play out and it could be a quick one with such poor liquidity between 6600 and 6170.

Buy/sell trigger left in the red for now and there hasn't been much to show bulls can recapture control.

Daily below

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To get a better understanding of the moves over the last month lets look at the 30min chart and you can see one hell of a set up for the smart money.

The heavy distribution channel dating back to mid May was played like a fiddle to the crescendo which happened to coincide with the June long weekend.

This has left many many trapped long positions - most of which are 7110 - 7190
POC for main distribution range is 7130

The next consolidation range was from Tuesday open to Thursday close at 4pm.
The POC for this range is 6600 (no surprises there)

MMs once again used the lighter volume to trap more longs in overnight trade with the ASX opening at around 6450.

The 6450 level seems to be an important one as the it's the POC from Thursday futures to Saturday close.
It just so happens to be the level at which the index closed at also, setting up for an interesting week ahead.

If bulls can hold the 6450 level then theres a good chance we will see a run back to 6600.

However if bulls drop the ball then we should see the price come down to test 6170 level.

30min chart below
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With the XJO in such a precarious position now is not the time for hero trades so size your trades accordingly

Good luck whichever way you trade...