The XJO closed slightly lower again on Thursday, where the...

The XJO closed slightly lower again on Thursday, where the market generally held firm despite the poor overseas lead.
Spread continued to reduce today, but volume increased a little and the close was about neutral.  
The contracting spread and firm volumes suggest the market is coiling itself up (like a spring), and will probably release this energy with a sharp expansion in trading range at some point (soon ??).
The Index continued to trade in some form of consolidation mode today.  Price remains 'inside' the range of Tuesday's upbar, and is still above the last (minor) breakdown line.   
I continue to feel like the local market is positioning for a positive move, however if overseas markets were to fall sharply (for whatever reason), there is no doubt we would also follow suit, and might even do so more sharply - as recently bought positions in anticipation of a push higher may be quickly dumped in response (causing a wide spread down bar), at least in the shorter term.


cheers

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