charts & thoughts (october), page-68

I am liking your MJI Bones, it seems to be working well.

On the Daily chart today we pushed up, but fell off throughout the day, closing low on the lowest volume for a few days.

Which in isolation didn't look that great, apart from the lower volume, which infers that selling pressure was not huge.

Often it is worth looking inside the daily bar to see what was happening in more detail.

On the 1 hour chart, it pushed up strongly early (& got everyone excited), then came off on lower volume each hour for the next three hours....a lack of selling pressure.

Then a touch of supply came in during the next hour (shaking out the weak hands), and the last hour was a much narrower spread down bar with almost double the volume (590k Vs 927k), closing high on the bar.......Hmmmmm

This same set up was seen on a fair few stocks, the XJO and some sectors as well (A guy I know calls it "clearing a path higher").

Looking for a positive response to the potential "test" seen on the overnight markets in the U.S and we will be away again I reckon.

cheers