The XJO closed higher on Friday. Spread contracted considerably...

The XJO closed higher on Friday.
Spread contracted considerably again, and volume reduced-I expect the price range to expand again in response-at some point soon
The (bullish) absorption theory continues to be a high probability.
Bullish absorption can be difficult to confirm when it is happening (but usually appears obvious in hindsight).  The most common telltale signs are >> price action that shows a 'pressing nature' towards the upside >> tight clustering together of multiple closes >> and threatening down bars which suggest price will breakdown - but there is never any damaging downside follow through in response, often price seems to miraculously reverse higher instead.


Weekly Charts Later Tonight

cheers

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