The XJO closed a little lower on Wednesday, where spread...

The XJO closed a little lower on Wednesday, where spread narrowed considerably, and volume remained modest.
After a couple of up days, the market moved into consolidation mode today - which is generally a attempt to solidify the recent gains.
At the same time this period also gives the sellers an opportunity to step up and take the lead.
That said,  the reduced spread and volume today suggests selling pressure was relatively low.
As usual, we look for the response to confirm over the next day or three...
Finally, I note that spreads have reduced quite a bit over the past two days, and often when price contracts like this, it doesn't take too long for an expansion in response (kinda like an 'equal but opposite reaction').   This principle does not however, offer any suggestion of which direction though....so I anticipate either a failure at this level and price breakdown, or another challenge to the weekly level above (red line) >> and for me, the lack of selling pressure over the last two days suggests the latter option appears more likely.


cheers

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