The XJO continued higher today, where the local market has had...

The XJO continued higher today, where the local market has had two consecutive up days for the first time in more than a month.
The days price action was a little unusual.   There was a large initial price spike higher in response to both the strong overnight trading, and also the positive momentum from the confirmed local buying over the previous two days.
Following the initial spike price drifted lower pretty much all day, which gave the impression the higher prices were being heavily sold into.   Then there was a second very large price spike in the closing auction.   
Perhaps this is a new method of reverse accumulation (in a 'buy the offer' style).   Remember the object is to accumulate at the lowest price possible.   Watch the price action tomorrow (and Friday) for some confirmation this is correct (or not).

Volume was reduced again today (although still above average overall), which suggests that selling pressure has reduced somewhat.
Spread (or range) however increased a little, so it appears there was active buying today for sure.

The close was at a logical level again with the session finishing adjacent to the close of Monday weeks widespread down bar.
Two consecutive closes at a logical level (green lines), suggest that retail traders are no longer making up the the bulk of the daily volume, selling with no regard.  Professional traders have likely gained the upper hand and taken control for the  last three trading days.

Instead of marking the breakdown lines, I marked the two future breakout lines today (arrowed in purple).  These levels are a guide as to where the market sentiment may become more positive (or even bullish when the higher volume levels like this are exceeded).
The lowest one was exceeded today, and if price can remain above, it gives subsequent trading a more positive stance.
It was however, built on lower volume and is not as strong as the one above that @~5300 , which would be more positive if exceeded.
It is only early days yet, so don't get over excited...some buying had to emerge at some point in time.   The situation is still quite dynamic overall, professional traders would not be committed to their positions yet, so watch to see how it plays out over the next few sessions.


cheers

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