Smart and Sexy Monday

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



The XJO closed higher on Friday, where both spread and volume increased to average.
The Index was run up to the overhead resistance by the buyers in the market, however there was no serious attempt at a breakout.
This sideways price action continues to show the hallmarks of the buyers absorbing supply from the sellers (a narrow range, a pressing nature towards the upside, tight clustering of closes, and a failure to breakdown when price appears poised to do so), although it will only be confirmed when price actually accelerates away from the trading range.  If this theory is the case, it seems that most (if not all) of the supply available in this relatively narrow range would have been cleaned up (absorbed) by now, so either a breakout comes soon, or a decent shakeout (in an attempt to draw out some more stock).
It seems some sort of catalyst may be required to trigger an acceleration.....or perhaps it will come in sympathy with overseas markets.
And just finally, it appears bets have been laid, expectations are in place, and a fair amount of time and effort has gone into the potential accumulation within this range since late February......so should some unexpected event or news change the markets sentiment now, the dumping of all those positions would be spectacular......to say the least.







Good Trading and Investing