Thanks for opening 48&34. I liked the second image - a great and...

Thanks for opening 48&34.  I liked the second image - a great and ironic recreation of an Australian legend.

XJO up moderately today, +0.52%.



I’ve put up a Heiken-Ashi Chart.  It is a bit slower in depicting action than a regular Candlestick Chart which has the advantage of showing trends rather than the noise of a daily Candlestick Chart.

This shows the XJO continuing in its sideways trend.

You’ll notice that when the H-A Chart is trending upwards the bottom of the yellow candles tend to hug the middle line of the three-line short-term trend channel.

When the H-A Chart is trending downwards the tops of the blue candles tend to hug the middle line of the three-line short-term trend channel.

Currently, the H-A chart is showing doji candles and the middle of the candles is hugging the middle line of short-term trend channel.

We’ll look for a bullish trend change when a yellow candle appears and the middle line of the three-line trend channel is at the bottom of the yellow candle.

Conversely, we’ll look for a bearish trend change when a blue candle appears and the middle line of the three-line trend channel is at the top of the blue candle.

Let’s have a look at dominant sector in our market,  XXJ (Financials).

XXJ:



XXJ was up strongly today +0.92%.  But that wasn’t sufficient to shift the XXJ out of its sideways trend shown on the H-A Chart.  It is also held below resistance of the 200-Day EMA.  Such a sideways trend would usually break to the upside, but we’ll wait and see which way this goes.  It's always wise to wait for confirmation.

RB