can't even afford to be broke... - monday, page-2

Pointers for Today.

Friday's XJO range of under 27 points was the narrowest since 10 January when it was an extremely low 18.1 points. 10 January was also a Friday.

Narrow range days usually lead to range expansion - the direction of the break is usually good for a short term trade.

In the case of 10 January, the following Monday broke lower, then Tuesday was a wide range day (down) of almost 85 points.

It doesn't always work - nothing does.

But - the way today breaks could lead to a nice short term trade.

The volume on Friday was about 102% of the seven day average. So there was something of a battle going on.

As Jako has pointed out - Friday's close was high up on the day's range - suggesting buying pressure. Another good pointer to possible action today.

Official Chinese PMI figures came out on Saturday at an expansionary 50.5 and in line with expectations. So that might counter the pessimism engendered by the HSBC PMI data earlier in January.

Let's see how it goes.

Redbacka