Bandana Friday, page-6

Hi all

Spectac days in XJO


Looks likely that a pause in the down side will occur. I'm not convinced thats the bottom of the move.
Will look for some confirmation after the pause.

Candles.
Yet to show evidence of a pause. Unusaul to get two big reds in this market.

Volm.
Averages slowly rising into the fall, last time OBV was at this level, the XJO was higher. Perhaps that observation is reading too much into it. Minutiae and all that.

Yearly highs and lows
Less lows than yesterday, so buyers coming in, looking for bargains. Number of highs dropping though, so confidence is also dropping out. Overall, more peeps looking for bargains than bailing. A positive sign.

RSI
Getting into Oversold, apart from that, yet to turn.




Short positions.
There has been a very stable rising in the size of the short positions.
Given yesterays XJO move, I would have expected some short covering then, but non seemed forthcoming. See what the chart shows tomorrow.  More expectation on my part of short covering, especially given the small rise in the yearly HL index.

from https://twitter.com/AusShort



Conclusion.
Tomorrow liklely to be a pause.
Expecting early next week to be more of a determinant in which direction the market will go.
I suspect some more downside testing.
No hidden divergences of note, will be more willing to act when I see a reversal candle structure and/or the RSI turn up.

MFx