big daddy's cool hand luke 'moi' wednesday, page-4

XJO ... I'm looking to sell rallies from here on...but thats just the opinion of this Chartist.

1)...because the XJO has failed again to maintain value above the 38.2% retracement level from the May swing high(4448.50).

2)...today's action finished back inside our (orange) "controlling range" confirming that last week's action above the upper boundary(s) is very likely a "false break-out".

3)...today's action also broke a short-term H&S neckline plus below a Gann support level(yellow) suggesting at the very least a test of the important Pt. of Control level @ 4074 and more likely 4050 min.(H&S MM). I say min. because the worrying sign going forward is that if 4074 doesn't hold current weakness then one must conceed the May - July corrective phase has ended and we will see lower(than 3986.50) fairly soon.

Tomorrow/early Thursday probably will see a back-test of the neckline(4108) or even as high as 4122(top of Controlling Range level)because of the short-term wave structure from our most recent swing high(4175.80).