Hi Folks,There have been volume surges in the past twelve months...

Hi Folks,

There have been volume surges in the past twelve months on XAO/XJO around the following dates:

20/3/08, 19/6/08, 19/9/08, 19/12/08, 19/3/09

It doesn't take too much imagination to work out why.

The market is currently overbought. The Daily Slow Stochastic is the highest its been since the volume surge occurred back around 19/9/08. The run up over the past seven days is very similar to the run up back on 19/9/08 which was also over seven days with similar "hiccups" or "punctuation marks" in the run ups.

I don't think the bears would be too worried by today's events.

It's what will happen in the next week or so which will be of most importance. A swift pull back? or consolidation?

We shall see.

Cheers
Red