XJO Forges Further Ahead

The XJO continued its bullish momentum, putting the 5,000 mark more distant in its rearview mirror after another healthy gain. On an intraday basis, price action has now breached the upward resistance. The next target for bulls would appear to be 5,177, the mark set in early September 2008. MACD momentum is seeing the pendulum swinging further in the bulls' direction. Bears will need to stop the rally in its tracks soon and force levels back underneath 5,000 or risk being overrun.

On an hourly basis, the XJO is now testing upward resistance. A break above would raise the risk-on mode another gear.