Cheese Doodle Monday

Good Morning and Welcome to the XJO Monday Thread

The XJO initially accelerated lower, and eventually recovered a little of the lost ground to close as a downbar.
Spread or range increased again, but volume remained below average, and the close was almost at midbar.
I imagine any speculative positions that were opened off the lows on Thursday were quickly dumped early on Friday, and this may account for the increased spread, particularly earlier in the session.  Price then drew out some support at the longer term level marked (green lines), and also adjacent to the little period of absorption (red), which led to the close well off the days low.  
That said, once again this support looks to be more speculative than really serious.
In response to the speculative support, should price attempt to bounce here, expect resistance at the breakdown line above (purple).  But keep in mind that if price continues to push lower, when the Index closes clearly below that absorption zone, a retest or washout of the recent lows becomes increasingly likely.



Good Trading and Investing