Ballet Wednesday

Good Morning and Welcome to the XJO Wednesday Thread

Not too much damage was caused to the Index after Mondays close, but a 'whole lot' was done after Tuesdays close.   The Index sliced down with real intent, showing no regard for previous levels with a wide spread and very high volume.   Price almost pushed right down to the top of last years four month long - sideways trading range at the lows of the session.   I have that trading range as roughly between 5675 - 5790,  which is where the Index might end up consolidating in the near term....we'll see....
Today's bar and volume does offer some suggestion it is climactic in nature, if so - there may be a (brief ??) rally of some sort in the near term, before a good chance the lows will be retested again for strength.
The analysis should become more clear, once the serious volatility begins to subside, and the dust settles a bit.
However, at this stage it is highly unlikely there will be any swift recovery now, for me the most likely scenario is for price to eventually find a level where there is enough support to move sideways, and then consolidate for a period in a trading.



Good Trading and Investing