Weekend Charting and Chat - 5th August 2016, page-2

The XJO closed higher on Friday, where spread narrowed, and volume reduced to well below average.
For the second day, price has shown no further signs of downside follow through, after Tuesday and Wednesday's downbars brought the Index back to the former resistance zone.   At this stage, this price action can be considered a test for support.
The slight pressing nature and higher closes on Thursday and Friday offer some consideration of absorption (again), although as they were on low volumes, the Index still remains vulnerable to a negative high volume event, should it arrive.
For me, the Index is now in the middle of a range, and until price can either close clearly above last Wednesday's high @5539.3 (potentially bullish), or price can make a clean breakdown below 5439.8 - thicker green line below the purple zone (potentially bearish), which leaves a 100 point range for price to work within.