XJO popped up on the opening, then fell. At 1.00 pm (Sydney time) it was well down. The afternoon session pushed higher and the Index finished up +0.12%. That’s hardly a stellar result but the intra-day action was positive.
That needs to be put in the context of the wider scheme of things.
The XJO continues to struggle at overhead resistance.
XJO finished, more or less, at the 20-Day SMA.
Overhead is double resistance: horizontal and the 50-Day EMA. That’s solid resistance.
The trend channel remains up. That’s a positive.
A fall-back here would be very bearish.
Australian VIX has fallen every day for the past nine days. That’s starting to stretch the friendship. I think the next move in the VIX is up – and that’s a negative for the market.
Stay defensive.
Australian Market Report 