The XJO closed flat on Wednesday, where price initially slipped...

The XJO closed flat on Wednesday, where price initially slipped lower, and then recovered the lost ground by the close of trade.
There was no confirmed downside follow through in response to Tuesday's trading, and at the same time there was no attempt to recover back above the breakout line (arrowed).
Resistance at the breakout line (~5300) will likely be increasing, and a recovery above it will probably require an increased effort.
The Index effectively came back today and tested the market for supply, but sufficient demand came in to absorb the supply and stabilise the market.  This was a pretty good effort overall, and shows that reasonable demand remains in the market.
The response tomorrow will be an important guide to the underlying strength in this market - an up bar tomorrow is generally expected after a bar like today's.  However any reasonable upbar would most likely require a challenge to the ~5300 level, which may prove difficult.   Opposing this, a down bar in response may suggest today's increased demand was only temporary.


cheers

.