XJO finished well up today after lower than expected inflation...

XJO finished well up today after lower than expected inflation figures came out at 11.30 a.m. XJO finished up +0.85%.

XJO broke above an important horizontal resistance level today where it has failed on several recent attempts.

NewHighs-NewLows Cumulative.

This chart remains above its 10-Day MA. This is a good guide for medium to long term investors.

Looking at the tea leaves suggests this move to the upside may not have too far to go.

A negative divergence is forming on the NH/(NH+NL), That's had a good record of predicting changes in trend.

XJO/IAF is shown in the lower panel. IAF is the ETF for Composite Government Bonds.

A divergence in XJO/IAF often precedes a change in the XJO. Currently there's a negative divergence on XJO/IAF. Watch for a fall in the XJO.