Watermelon Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread

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News for Today (AEST)




The XJO closed the day sharply lower on Tuesday
Spread increased further, volume was above average, and the close was poor.
The Index pushed lower pretty much from the outset on Tuesday, but finished the day at a logical level.
As usual in these circumstances, the depth and duration of any pull back will offer an insight to the overall strength or weakness of the market.
Eg- in an uptrend, when the waves of buying reduce in both length and duration, (and duration is also general proxy for volume), and the waves of selling increase in both length and duration, then you know the market is poised to change trend (and the exact opposite is true in a downtrend).
Anyway as mentioned, price closed the day at a pretty logical level (as can be seen on the chart), and while a test for support of the previous breakout is fairly likely @~5500'ish, the shape of Tuesday's bar, and the size of the volume, make an immediate reversal quite possible (where a close above Tuesday high would be potentially bullish - @5592.1)








Good Trading and Investing

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Spoiler : ***Warning - Saucy Cartoon***