I'd say this chart has some problems now:Obviously we have sunk...

I'd say this chart has some problems now:



Obviously we have sunk significantly below the target for wave 2. At this point we are back to the starting point of wave 1. Now ordinarily I'd say that cancels the wave 1 + 2 and we have to start again, and definitely if it goes lower than 12, as that implies the wave 5 correction had not completed earlier, but as @W3hunter pointed out with charts in the "anything but charting thread" (the cheeky b*gg*r!), the RSI is stretched beyond reasonable and the MACD is currently giving us a positive divergence so we are plus we have a declining wedge that is almost out of wedge, so it looks for all the world like this just has to pop, probably tomorrow on this chart. I think the targets would drop to 24 and 29 if wave 2 become 100%, but it is really stretching an EW model to have that - I am not even sure that a 100% retrace is legit. So I am keeping the model in place for the moment, but will probably revise it tomorrow. Its gonna do something, and it looks like it will be dramatic either way. If going south, the next support is 10.50, after that, their really isn't any support for a while, and all the indicators are already pretty much stretched to their limits, but I haven't yet seen any convincing buyer surge, but then the selling has been pretty half-arsed as well. We will have to watch to see how many of those 12mil options just converted by Van Der Hoek appear on the market. I think Thursday will be adventurous.

As W3Hunter pointed out, we seem to be tracking the XJO at the moment, so a down day on the wider market is likely to completely break this chart, an up day is likely to do the reverse. The first break up of the wedge is likely to be about 4c, so say 15.5 to 16