After a long weekend and the futures down significantly in night trading, the US market opened sharply lower – at one stage the Dow Jones was down more than 300 points. It managed a terrific fight back however, to end the session down 100 points or 0.9%. The Nasdaq and S&P 500 managed even smaller losses. This effectively meant that our market had ‘overdone’ the selling over the past couple of days and as a result, enjoyed a nice bounce. Putting on 2.6%, the XJO closed 107.9 points higher, out doing the Small Ordinaries which had a 2.2% gain. Our Gold sector closed flat and all others participated in the rise. The big banks, BHP and RIO were just some of the big caps that had solid moves. So far, so good for Peter’s XJO review from last Friday night for a possible way forward. From a short term trading perspective, we are now in a tight range so a break up or down is required to determine our trading direction which will also give patterns a chance to form. Volatility is rising again and volume today was about average.

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