X-Ray Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread
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News for Today (AEDST)



The XJO closed sharply higher on Tuesday, where spread was wide, volume increased, and the close was high.
The Index pushed up strongly from the open, accelerating higher throughout the day.  
There is always a chance a widespread upbar is full of supply, so the initial response will be important.
Barring a reversal bar, when price genuinely spikes up strongly like this, especially when it is broadly based across the market. The momentum generated will often continue to carry price higher for a few more bars with narrowing spreads (until the exuberance starts to wane....), then price can come back a little to consolidate the gains (forming what classical TA sees as a bull flag).   This period of consolidation can also be used as a rough measure of overall market strength, so consider the depth and duration of the pullback or consolidation if it occurs, in this regard.




Good Trading and Investing