maxi's millions - keep it simple - monday, page-19

This post is purely to gratify the bears among us. Not intended for guiding investment or trading decisions!

Now that the market has gone down so much after failng to break through the upper trendline, I looked at the XJO to see the potential downside that could occur without the market totally shifting (ie keeping within reasonable parameters / current longer term trend).

NOTE: This is not the historical daily chart: I've added in a couple of candles (circled in pink) for today and tomorrow. That would be too big falls in a row. Not unheard of - but I only chose two big drops for the sake of simplicity. If it keeps dropping it could take all week and still stay within the trends.

If it happened this way, it could hit the downtrend at 4587 or so (or a bit lower if it takes all week) and still remain within the medium term uptrend and within the shorter term down channels. Plus it would be around the 50% Fib from the latest uptrend.

If it kept dropping and got to 4477, that could signal a double bottom, touch the 61.8% fib and maybe shoot up from there.

Or it could keep going down a bit further :(

Or today could be THE low as some people think :)



(I note that BHP doesn't seem to want to stray too far below this discussion's $43.50 - a positive sign.)

Second warning - this speculation is for entertainment value only.