The XJO closed lower on Tuesday, after being much higher in...

The XJO closed lower on Tuesday, after being much higher in early trade.
Volume was increased - the highest for a few weeks - so pay attention to this bar, once it's intent has been confirmed.
The Index pushed higher from the open, but eventually closed poorly as a down bar, near the days low.
- On the plus side - price remains within the range of last Tuesday's widespread upbar, and above both potentially important lines.  Sentiment has been relatively positive for quite some time (and doesn't usually change on a dime), so this could easily be some form of absorption bar - although if that is the case, it is not very well placed.
- On the negative side - the poor close looks bad on screen & in context with the chart, but it is the highish volume which maybe of more concern.  Even if the market was comfortably able to absorb today's supply, the fact that increased supply was drawn out, suggests selling pressure has increased.
At this point just watch for the response tomorrow.  It will help to confirm the underlying intent of the broader market.
I expect price will initially open lower tomorrow, in an attempt to test the market for supply - then price will respond depending on how much supply is drawn out.
It may be an important day tomorrow, so stay on yer toes....


cheers

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