thumping thursday, page-33

A couple of days ago I ruminated that there perhaps wasn't enough bear pain and reassessment of the trend to qualify for a top but if my gut wasnt't a known liar I might have listened. Seeing a short position move underwater is always a good time to reassess though...

Below is an xao chart and it seems very well behaved to my eye. Previous highs and lows have consistently become overhead resistance (once clearly broken) and now the index is churning away at the late October low. The October 10 low does seem a possible objective but the banks seem to have moved past the tipping point so I have trouble believing it.

Sentiment is the other factor of course and the CBOE put call ratio is still saying that a major top is either in or very close.