Monday Evening Liqueurs. 31 October, 2016. XJO up solidly today...

Monday Evening Liqueurs. 31 October, 2016.

XJO up solidly today +0.64%. Volume was well above average - that might have been affected by end of month book squaring.



Today's solid up move came at the 200-Day MA. That's a scenario I've been sketching out for some days.

Today's action was a good start for a counter-trend upside move.

I still can't see any reason to think that this upside trend will be short lived and will be sold into.

Today showed some odd discrepancies from a solid start to an upside move.

1. Breadth was neutral. Adv/Dec Ratio was 50.9%. Marginally positive.
2. VIX went up +6.5% while the XJO went up +0.64%. A rising VIX on a rising stock market is an anomaly.

Yes - it's a bit odd. Maybe it means something - maybe not. But these negative values fit with my scenario that there's not a lot in this rebound. I'll be happy to be proven wrong.

I'm expecting this rally to have more legs, before failing.

RB.