Cat Herders Friday

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



The XJO closed lower on Thursday, where spread increased, volume remained above average, and the close was poor.
The Index traded in positive territory for most of the day, but fell away towards the end of the session to close a little lower.
This leaves behind an ugly looking bar which infers future weakness.  
That said, some serious downside follow through is needed to confirm this potential weakness, as there are multiple levels of congestion to the immediate left which should offer some form of support should price sell off with intent.
A clear break and close below the circled (mini) reversal is likely to be needed for a change the intermediate trend, which at this point in time remains as 'sideways to up'.
In previous days I have suggested the Index may be undergoing bullish absorption, and listed some of the criteria or indications of this principle.  Another indication is threatening downbars which fail to see damaging downside follow through, or at times any downside follow through at all.
As Thursday's bar was on above average volume, I expect there will be an initial thrust lower to challenge the sellers to take the upper hand, however the sellers have been reluctant to take control for quite some time now............there have been many opportunities........






Good Trading and Investing