ceb's darkest before the dawn monday, page-54

Cheers,

Last month's finish on the low for the month after 3 prior red months looks like as a capitualtion of the sellers on a monthly timeframe. Then look at the daily and the false break Red mentioned, the three thrusts down into the low (assuming that's what it is), where we are support wise, the bullish wedge formation (which we should break of by mid next week at the latest or something is wrong), just too many pointers for me to not see last Friday as a low of significance.

Have a look at RIO's higher double bottom last Friday at 7990 and NAB's higher low after a false break of support a few weeks ago. BHP held its June low by 11 cents last Friday and the volume spike there too.

The doubters have to be here right now and they have to stay for a while. If everyone got long right now there would be no one to get long later in the month.

The market will do whatever it wants and can stay irrationally disconnected from what we see as "normal" for extended periods. The information on the charts are of primary importance to me, the other stuff (macro data) is secondary information of less relevance.