Plimsoll Friday

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Good Morning and Welcome to the XJO Friday Thread
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News for Today (AEDST)



The XJO eventually closed a little higher on Thursday, where spread remained narrow, and volume was about average.
Sometimes a narrow spread upbar on average or higher volume can appears as potential weakness coming into the market, and while this may actually be the case.......the recent price action suggests otherwise, and I am expecting there is a decent probability that price will now morph into a sideways trading range for a while now (with roughly a 100/150 point spread), unless of course something unexpected occurs.
So with that said, it appears the positive momentum from Tuesday's bar and volume continued to exert its influence on the chart, although for most of the session price was roughly flat, and really only popped up towards the close of trade. This suggests that the Index spent considerable time going through the absorption process around the previous breakdown line during the day.  The upper limit of a potential trading range is yet to be set, I expect one of the higher breakdown lines would be a logical place for a supply line.







Good Trading and Investing