Weekend Charting and Chat - 15 July 2014

The XJO closed moderately higher on Friday.

The upside spread narrowed again, although this time volume was only about average (so on Friday the reward for effort looks about right).

The Index spent much of the day oscillating (grinding) around the 5560-5570 level, potentially absorbing supply,
eventually closing just off its high, but importantly above the horizontal line @5559,
and marginally inside the demand line of the old reverse trend channel.

Should the Index clear this level safely, the next higher level to watch for is the high of the 23 July bar @5598.





cheers