The XJO closed higher today. The local market showed an...

The XJO closed higher today.
The local market showed an underlying resilience, and a reluctance to continue lower.
Spread and volume was pretty strong for a Monday, so the market didn't hide away and wait for overseas markets to trade.
Overall, there was no downside follow through in response to last Friday's widespread down bar - which accelerated lower after rejecting the weekly breakout line (red).   Instead the Index came back and tested the newly developed little shelf below for supply (arrowed), and drew out pretty good demand which turned price around and eventually forced a higher close for the day.
One day is not enough to hang your hat on, but it does suggest the broader market does not 'want' to go down right now (it has certainly had the opportunity to do so....).  Yes, it may be forced to at some stage, but right now it is reluctant to come back and test the strength of some lower levels.


cheers

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