If-else statement indentation

The following codes are from "Learning Python(5E)" P545. I am a little bit confused with the indentation. From the codes, I thought the else-statement should be linked with the first if-statement rather than the second one. However, from the output, it seems it is linked with the second one. Did I miss something from if-else-statement indentation? Thank you!

 def intersect (*args):
    res = []
    for x in args[0]:
        if x in res:continue

        for other in args[1:]:
            if x not in other: 
                break

*# which if-statement does the following "else" belong to?*

        else: 
            res.append(x)
    return res