Good Morning and Welcome to the XJO Tuesday Thread News for...

Good Morning and Welcome to the XJO Tuesday Thread

News for Today (AEDST)

Once again the XJO dipped lower, only to close back near its highs,
this time when it dipped lower, it found very little selling pressure, as can be seen in the very low volume.
The last five trading days are now suggesting some accumulation may be going on.
Even the big down day on the 28th Jan, which looked pretty nasty at the time,
had the next day move higher, which suggests that not all that volume was selling.
And now three days where all the closes are clustered together, inferring absorption of supply.
A rise up to 5250/5270 for the cash index over the next few days is easily possible.

David Weis made a good point in his Daily Newsletter Today.
Using a Weekly ES chart (S&P 500 Futures) he pointed out a potential E/R Failure (effort Vs result failure),
which either suggests that the bulls are absorbing the supply from the sellers,
or the sellers are absorbing the pressure coming from the buyers.
Something is definitely going on, the numbers just don't add up.
I'm leaning towards the bullish case.
A lack of follow through supply overnight would strengthen this theory,
and a similar bar to Monday's on the XJO would look promising for a rise to 1800/1815.

Good Trading and Investing


cheers