the story of the constant size ellipse & price, page-7

Hi friends who are watching the standard fixed size ellipse of the XJO,

We have reached the fixed size ellipse's boundary at yesterday's close where only two possibilities are pertinent and will occur shortly if not immediately:

1. previous ocassions when this happens, the XJO will gather support at the edge or boundary and then quickly rebound shortly in a day or two or immediately,

OR

2. it will punch through the edge, with the penetration to the downside leading to a newly formed ellipse to indicate the minor change in trend and that a downturn is in the initial stage of operation.

With the Dow up some 208 points last night, and volatility in the air for most indexes, which direction will it be for the XJO? Support at the edge or breakout to the downside? Or just staying there for a day or two before it finally breakdown?


Cheers, and have a great weekend!

dascore