Common Courtesy 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.
Spread narrowed considerably, the close was well off the day highs (again), and volume was well above average - but appeared quite badly affected by the spillover of equity option expiry from Thursday.
Price is back at a similar level, and also traded in a very similar fashion, to last Monday (14th March) - except for the volume difference.
Using the raw bar and volume data, it would suggest that serious selling pressure had arrived and put pressure on the Index (and this may yet prove correct), however discounting the volume somewhat for options expiry, could suggest further absorption of supply at this level (which would fit better with the previous price action).
The price action from Tuesday, Wednesday and Thursday does look like a shakeout over three bars, although the volumes are potentially back the front for a textbook set up, and the response on Friday was muted at best.....which is not great.....

So this maybe a time where market participants should be aware of, and consider the the different price scenarios in the near term.
Then wait for the early trading on Monday to unfold, which should offer an insight into the short term direction for early next week, and possibly some confirmation of the previous few bars, and their intention.








Good Trading and Investing

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