Cost Cutting - Friday, page-6

The XJO continued its rebound today, up +1.8% after the previous day's +2.1%. That's almost +4% in two days.

Volume today was below average. That probably means that trading was mostly done by institutions (professionals) while retail investors (amateurs) remained on the side lines. That's a positive for the market.

Here's a Heiken-Ashi Chart for the XJO:



Today's Heiken-Ashi Candle is a flat-bottomed candle with an upper tail. That indicates that the Index is in a short term upside movement.

That doesn't mean that anything much has changed in the bigger scheme of things.

The Chart remains below the descending trend-line from 28 August. The Detrended Price Oscillator remains below Zero but getting close to an upside break-out. Dynamic Zone RSI is above its upper band - so we could see more upside if this is a momentum movement.

Until we see at least a break to the topside of the 50-Day MA, I think this market continues to deserve respect - bearish respect.

RB