Escargot Thursday

Good Morning and Welcome to the XJO Thursday Thread

The XJO closed lower on Wednesday, where spread narrowed and volume increased to above average.
Volume was higher than the previous three days, but on that volume- spread was not particularly wide, and the close was inside the previous range.  
The Index made an attempt to recover some of the lost ground soon after the open, and briefly touched the line at ~6052, but was unable to maintain the challenge, and then settled back and appeared to move into consolidation mode (sideways) for the remainder of the session.
This suggests there was some support (buying) in the market early on, but it was overwhelmed by supply as the session continued, which suggests there is more downside to come.
The close was (just) within the range of Tuesday's widespread downbar.  If Wednesday's close had been below the low of that bar, I would have been inclined to call the price action as only 'temporary support in a downtrend' (which may still end up being the case), and price would be likely to respond by continuing down, to test the strength of some lower levels.  
However with the close within the previous bars range, there is some chance price will again attempt to recover, or even attempt to move into consolidation mode (albeit a small chance).




Good Trading and Investing