The XJO closed lower today, at least partly in sympathy with...

The XJO closed lower today, at least partly in sympathy with losses on overseas markets.
The recent attempt to breakout above the range never really got going, trading conditions were never really favourable, and the breakout has likely failed.  This leaves the market back within the relative safety of the previous consolidation zone.
Spread increased on a similar amount of volume today, as buyers stepped back from the plate to reassess.
The XJO is known for overshooting its levels (perhaps that has something to do with the large bias the index has towards a small number of very large cap stocks).  The market is now back at the same levels where price consolidated previously - effectively testing the market for strength.
Watch the levels below (~5800 and ~5700), as they may prove to be an early warning of a change in short term trend if clearly broken.


cheers

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