wish you well wednesday, page-10

I know I said yesterday I wouldn't post for a couple of days to see whether I had to come back and eat humble pie over my call that the SPX topped during Friday's trading but there is just a couple of things I wanted to mention. Firstly, and probably goes without saying, that if that high from Friday is taken out then I am clearly wrong and it has another wave up. At the moment that doesn't look likely.

The next thing that is on my mind here is the local XMM index - Metals and Mining. I like it as an index. At the moment it is making life very difficult for me. Looking at the short term picture, it wouldn't take much to break the downtrend it has been in for six weeks but when you go and have a look at the much longer term picture - say five years - there is a risk that it is forming a multiple right shoulder of a large head and shoulders top that would take it back to the 2009 low. Just something we need to watch.