The XJO closed higher on Friday, where spread narrowed...

The XJO closed higher on Friday, where spread narrowed considerably-when compared to the previous two bars, volume reduced-but remained well above average, and the close was again at the day high. The momentum generated over the past couple of days continued to carry the Index higher on Friday, however the increased difficulties can easily be seen in the price and volume (very high volume, but much reduced spread). Whether these increased difficulties are part of the absorption process, or if price would like to come back and test for supply....remains to be seen. Under normal circumstances, that very high volume this week would be tested at some point for sure, but after a massive shakeout like that on Wednesday, circumstances are still not quite normal.....yet.
My feeling is that price might like to come back and test, but the momentum was too great on Friday, and perhaps that breakdown line overhead maybe tagged first, before price comes back a little.
All that said, another upbar on Friday does offer increased confirmation that our local market has been well and truly shaken out this week......which should offer increased strength to our market over the coming period.