No News is Good News - Monday

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Good Morning and Welcome to the XJO Monday Thread
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News for Today (AEST)



The XJO closed lower on Friday, where spread narrowed a little, and volume reduced to below average.
The Index pulled back soon after the open in response to Thursday's poorly closing bar, however it appears that no serious supply was drawn out.
This pull back seems to be one of those XJO anomalies that occur because of the very high weighting of the Financial sector in the Index, and the Big Four (or five) Banks in particular, compared to the remaining market.  The rest of the market is still moving sideways (mostly), but combined they are not able to absorb the losses from the very large Financial stocks, and so we slip lower.  I believe this is why the XJO sometimes overshoots levels from time to time, in either direction.   (FWIW, financials are almost down to where some increased support may be found, although CBA itself may have a bit more downside in it before it reaches a similar level of expected support)
We are right down near the lows of the trading range now, and price appears vulnerable, but it is still trading sideways overall.
A 'clean and clear' break below 5645.8 may be enough to cause a change in trend, and is probably the level to watch in the near term.





Good Trading and Investing