The XJO closed lower on Friday, where price traded above...

The XJO closed lower on Friday, where price traded above yesterdays high, but eventually closed below its low.
Spread increased considerably, and volume was just slightly increased.
The close was almost on top of Mondays high, which was a nice sensible place to close for the week.
Price initially pushed higher from the open, in response to the buoyant overseas trading and the recent momentum.
It was not surprising however, for increased supply to be drawn out as price push up towards the ~5300 level.
There was always likely to be supply waiting around that level, the question really was 'how much'.
It was a little disheartening (but perhaps instructive) that sufficient supply was drawn out for an equilibrium between supply and demand to be found well before price actually reached the ~5300 level.  Once that happened it didn't take long for supply to become overwhelming, causing price to start rolling over, and then the inevitable domino effect lower began to push price lower.
The depth and duration of this push lower will help us understand the underlying market sentiment, obviously the longer it takes and deeper price pushes, the weaker the underlying market sentiment, and vice versa...
There is a good chance the ~4730 level (arrowed) will be tested for strength early next week, and the response at that level will likely depend on how much supply is drawn out.
Keep in mind that there remains a much stronger support zone below (centred around the 4000 level), which may draw price down to it like a magnet, if supply starts to become overwhelming again.
Interesting times...


cheers
.