Wine Friday

  Good Morning and Welcome to the XJO Friday Thread


It was Individual equity expiry on Thursday.....where  the bulk of the increased volume from this event usually carries over to Friday.
The XJO closed marginally higher on Thursday, where spread remained below average, and volume was again pretty strong.
Price initially dipped lower, but recovered the lost ground by the close of trade.
Since Monday, when the Index sliced lower on relatively low volume, there has been no serious downside follow through, and volume has been increased, and quite reasonable since then.  The failure to breakdown on higher volume suggests buying or support is probably taking place.
At this stage the current pullback is looking less like a true breakdown, and more like an overshoot of the levels, something that is not uncommon for the  XJO  (perhaps this penchant to overshoot levels has something to do with the very high weighting of seven individual stocks - The Big Four Banks, Telstra, BHP & RIO, which together must make up a large (unhealthy) proportion of the Index).
If quiet buying has really been taking place (unconfirmed as yet), it will likely take some pretty serious downside follow through now, to cause those new positions to be dumped, and cause a domino effect.





Good Trading and Investing