The XJO closed higher on Tuesday, where sustained demand kept...

The XJO closed higher on Tuesday, where sustained demand kept price grinding higher throughout the session.

OK, the spread today was over 100 pts, which in normal times would be considered strong, and quite wide.
That said, I know we should expect the daily ranges to normalise over time, and perhaps that what started to happen today (perhaps).
Just keep an eye on the response over the next day or two, as when today's trading is put into context with recent trading - the spread narrowed considerably to the narrowest range since the 5th March (arrowed), and volume was quite strong (and I expect a small amount more will be added around 7:00pm tonight).  This combination would generally represent an increase in supply (selling pressure) being drawn out of the market.
This doesn't mean 'we have a serious problem just yet', but does warn that some increased supply may have emerged today.
And any new supply would need to be absorbed if these price levels are to be maintained.
The close however was quite strong (up near the days high), so at least that was a positive.
If price successfully remains above the recent breakout line (~5300), there is currently a 50/50 chance price will still come back and
re-test that level for strength. Finally, the next higher level where increased resistance is expected would be around the 5700 level.


cheers

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