general thoughts anyone, page-3

Hi JG,

The Chart is interesting, as always.

On the AGO Daily chart, last Wednesday and Thursday saw bars that dipped lower and found little Supply (No Selling Pressure), then on Friday we saw a response to the low supply with a wider spread (gap) up bar on an increase in volume, closing on it's highs.

This in itself looks a bit bullish, however we still need some sort of confirmation that Fridays bar does not include any hidden selling, as I think it might.

It could also be an attempt to absorb supply from the left, so Monday and Tuesdays bars will give us some further info as to what is really going on.

The Weekly chart also shows a potentially bullish bar last week, it pushed down low and found little supply and then floated up (on that lack of selling pressure), closing on it's highs.

It's been six weeks since we have seen a bar on the weekly chart that has closed on it's highs & Volume was the lowest for nine weeks, showing that there is not much supply down here right now.

So we have some potentially positive signs on both the Daily and Weekly Charts, but we know that all boats rise and fall with the tide, so now to try to put it into context with the overall Index's.

The XJO also has a potentially bullish set up in place, on the weekly chart since the week ending 16th March the upbars show a widening spread on an increase in volume & the down bars show a narrowing spread with lower volume.

This weeks bar (on the XJO) dipped down and found little supply (volume was low), and closed on it's highs, all potentially bullish.

The DJIA saw some potential stopping volume (SOS) overnight last Tuesday & a response to that on the Wednesday and Thursday.
That potential buying will probably need to be tested sometime next week, so I expect we might see it come off a bit, back down to an area between 12,710 - 12,800.
If this happens and we see Low Volume (No Selling Pressure, where supply was present last Tuesday), and then a positive response to the lack of supply, we might see the DJIA come up to take another look at the recent highs.

However if the DOW comes off a bit and volume is again high, there may be another leg down, but I don't see any serious supply coming in to the downside so far at least.

Thats my wrap up for now, time will tell what actually happens, as it all unfolds.


cheers