The XJO has bounced off Monday’s low of 5600 points. A combination of the US indices trading modestly higher and the short term oversold conditions in the Australian banks, lead to the minor rally in the XJO. However, with relatively weak top line revenue growth in the US, we still remain cautious on the expected price action in the week ahead.
A break above 5830 will be bullish and a rollover in price around 5750 followed by a later break of the 5600 support will be quite negative.
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