XJO and Volume: 28/9/2010

This chart shows just the XJO (ASX 200) and volume.

Yesterday's action looked like a breakout move. On a breakout move, one expects higher than average volume.

Yesterday, I dismissed the low volume on the basis that yesterday was a Monday, and volume is often lower on Monday than the middle of the week.

However, that may just be a rationalisation. That volume yesterday was just too low for a breakout move.

The more I look at this the more I'm going to discount yesterday's move as significant.

The market remains in a sideways consolidation.

Let's wait for a definitive move.

Cheers

Red