XJO Too bullish?
Index fails to make it back to the 5660 level…so far.
The daily chart of the XJO is showing a very bullish day breakout off the back of 4 down days.
What’s to notice is the RSI has failed to make a new high.
Next price target for the Index is 6200 with small resistance at 5950 being the May 2008 high ( yes it still counts)
The real message is in the Weekly chart below.
The Weekly chat of the XJO is now showing a number 3 Candle ( high range body ) into the close, this type of price action is bearish in the short term.
Year on Year the first week of March is a down week as Dividends come out of the market ( next week CBA )
This will be confirmed when the market trades below the Mid range of 5810 points.