Weekend Charting and Chat - 02 January 2015

The XJO pulled back briefly early in the session, before closing higher on Friday.

Volume (value traded) was again low, which casts some doubt on the analysis, however volumes should begin to improve next week, which should clarify things somewhat.

The recent story in a nutshell, is that the Index has made an attempt to breakout above 5378, where price had failed a couple of times during late November and early December. Immediately following the breakout above 5378, price came back & returned to admire its good work, haha, and formed a spring of the breakout (circled). The Index then accelerated higher, up to the potential resistance line drawn across the early November breakdown @5481, where it did not have the strength (or intent) to push higher on low volumes, and pulled back and tested the spring.

As mentioned earlier, if the analysis over the holiday period's low volume proves correct, the expectation now would be for the Index to again accelerate higher and re-challenge the breakdown line @5481.




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