$XJO - Aussie market reaching a turning point

Point (A) - This was the main reason I posted - The market is seeing one of the tightest consolidation trading ranges for some years. All closes on this chart since May this year have been between 5677 and 5747 - A very tight range. Also if you look back to the left of the chart at point (F) we are at that previous distribution point. One guarantee is what follows low volatility is higher volatility

Point (B) - The MACD - which is a representation of the moving averages - This is currently very flat indicating sideways direction of the moving averages themselves.

Point (C) - Momentum is slightly to the downside - this in average of the last 12 periods which would represent 24 weeks.

Point (D) - This is where it really starts to get interesting - ADX - The ADX (or Average directional indicator) gives an indicator of trend strength - The stronger the trend in either direction the higher the ADX number. Less than about 20 on the ADX is sideways range trading. For an example from 2004 to 2007 the ADX was above 40 the whole time before dropping below in Sept 2007. The ADX currently at the close of this week is at 8.75 - The lowest ADX on this chart all the way back to 2003. Like I said we are in a period of very low volatility with high volatility to follow

Point (E) - This measures the width of the bollinger bands - Again another volatility measure. Again at all time lows for this time period

Point (F) - This was just a measure of the Head and shoulders distribution pattern that played out from Nov 2006 to Sept 2008. Head and shoulders when they break below - the downside target is the depth from the neckline of the head to the top of the head. You can see I marked these lines in red and you can see the breakdown of the lows in the GFC were very close to this depth projection.