Bubble Wrap Appreciation Monday

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Good Morning and Welcome to the XJO Monday Thread

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News for Today (AEDST)






The XJO closed higher on Friday (and possibly importantly above the high of last Monday's widespread downbar), where spread and volume were both a little below average.
Over that last couple of weeks, the Index appears to have rolled over under its own weight (as opposed to active selling pressure), but has really only been grinding lower.  This move has not shown an 'ease of movement' to the downside (so far), where the narrow spreads and relatively tight little downwaves illustrate the difficulties.
The volume spike on Wednesday 25th includes some carry over volume from Equity expiry day, and probably also some increased trading volume from those who did not wish to hold over the Australia day holiday, when there were two overseas sessions before we reopened again (the daily bar closing off its high on this day also suggests this to be the case).
So don't be too concerned at that large increase in volume for now.
Finally, while I might be a little out of touch at the minute.....to my eye this down move has not appeared very convincing so far, and looks more like a period of consolidation after a sustained up move, than a serious major pivot being put in.  That said, a retest of the most recent low would not surprise if the opportunity presents itself during this period (which, if it occurs, would test the strength of the support that came in on the 23rd/24th, and would also show how much supply is drawn out as price came off again at this level).






Good Trading and Investing