Twilight Zone Thursday

Early opener, as I will be out until later tonight......


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Good Morning and Welcome to the XJO Thursday Thread
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News for Today (AEST) and lots of it.......



The XJO closed higher on Wednesday, where spread increased substantially, and volume increased again, to well above average. The index swept lower soon after the open, briefly testing just below last Friday's low, and leaving behind a spring (although it would have been better served trading it intraday), before strongly recovering all of the lost ground, and more, during the afternoon. There appears little doubt the supply which was drawn out on news from the budget announcement, was bought up strongly on Wednesday. Volume was very high, and while it is possible (but unlikely) that price will just accelerate from this low, with high volume like that being drawn out, there is a strong chance that this little congestion zone will be tested again (looking for much lower volume) before any sustainable rise in price occurs.
Finally, while a price failure at this level is still possible, the probability has become less likely in the short term now.






Good Trading and Investing