Unsurprisingly the XJO closed lower on Wednesday, after it...

Unsurprisingly the XJO closed lower on Wednesday, after it appeared some increased supply had emerged on Tuesday.
This was the logical and expected response, so spread narrowed further today, and volume reduced a little.
There was a brief and short lived push higher at the open (in response to gains on overseas markets), which was not supported.
Following that the local market spent the remainder of the day in consolidation mode, attempting to absorb any supply being drawn out.   And it did a pretty good job overall,  where price was certainly not overwhelmed.
I expect that if the Index is unable to quickly continue higher again, and instead continues sideways with reduced spreads or slowly drifts lower, the probability the breakout line @~5300 will be tested for strength increases.


cheers

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