Ballet Tuesday

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Good Morning and Welcome to the XJO Tuesday Thread
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News for Today (AEDST)



The XJO closed lower on Monday, where spread and volume were both about average, although volume was quite high for a Monday.
As anticipated, the Index attempted to rise soon after the open, in sympathy with overseas markets, after they rose strongly last Friday night. Our Index however, which has recently shown a strong desire to come back and (at least) test the strength of the 5604 line where support was previously seen, thought otherwise.  And so in response, and perhaps unsurprisingly, price was unable, or traders were unwilling, to support and maintain the early rally, and the Index gave back all the early gains and eventually closed marginally lower.  It seems almost certain now that the Index will test the strength of this important level, and see just how strong the previous support remains.  
Finally, It should be noted that it has been fairly difficult to push the Index down so far, and it hasn't shown any 'ease of movement' lower yet, so there still appears to be a reasonable element of demand within our market.
It shouldn't take too long now, to find out if the sellers have been absorbing the buyers, and price will breakdown at the 5604 level, or if sufficient support and demand remains, and price will resume  the uptrend after some sideways consolidation of the previous gains..







Good Trading and Investing