Just a quick illustration of the negative influence over the chart prior to the the 2015 Christmas Rally that I mentioned above.
Price had seen a supply zone develop in late March and April 2015, followed by a price breakdown.
And Thereafter the Index was pretty much in a downtrend right into the Christmas Rally (arrowed), which was counter trend at the time, and the gains were quickly erased in early January, where price eventually washed out the previous lows.
Compare this to the influence the XJO has seen during 2016, and especially since the Trump shakeout.
Price has generally been uptrending during the first half of the year, and may have been about to roll over into a trading range during the second half (where it made an obvious lower high).
Then the Trump shakeout arrived which drew out very high volume (arrowed), and all that supply which was drawn out at the time was bought (absorbed). This was an event which potentially made the influence over the chart strong or positive again, and the subsequent trading has confirmed this, with two supportive events following the shakeout (also arrowed)
The importance surrounding the ~5600 level (actually 5575/5611), can easily be seen on this chart. Price has effectively broken out above these two levels, and while price remains above them (even if it pulls back somewhat to test their strength at some time), the influence will remain strong & the potential will remain for higher prices.
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