Ask a Stupid Question........ Friday

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



The XJO closed slightly higher on Thursday, where spread was a bit narrow, but volume was above average.
Today was Individual Equity expiry day, and volume was a little increased, however usually, the bulk of this expiry volume comes in on the following day (and sometimes this increased volume is used to mask, hide, or confuse, some serious selling or buying....so watch carefully).   The raw data on Thursday suggests increased selling pressure and potential weakness, however with price right down at the lows of the trading range, confirmation of the weakness is required.  And it will probably take a fairly decent effort (in volume), to break through the support that has held firm at the lows of the trading range for quite some time.
The Index initially attempted to rise on Thursday in response to the consolidation (absorption) bar on Wednesday, however increased supply was again drawn out, which eventually forced a poor close.  As usual with a this type of poorly closing bar, the response will be quite important (especially down at the lows of the trading range), as the response can be used to confirm the intentions within Thursday's trading.  So the watch will be on for any downside follow through-in particular, especially if it is on increased volume (although that will be hard to tell with the carry over volume from expiry day).





Good Trading and Investing