Below is a chart I posted earlier.The lower wedge line starts at...

Below is a chart I posted earlier.

The lower wedge line starts at the second lowest bar which is my magic 5360 level.

Yes it may break down and the 5360 does not have one major factor going for it.

From 1982 there has been a major low at 2X62 months.

First July 1982 a major low. There was no futures contract then but 1340/3 is 447 and the XAO/XJO low was 443 so not bad.

Nov 1992 was 2X62 months (with 62 months being the Sep 1987 high). This major low was 1341.

2X62 months later was the March 2003 major low at 2379 or 1340 X 2.

So now we have 4 X 1340 or 5361 as the low of the second lowest day in this bear. The lower wedge line runs up from that low.

But, it isn't a 2X62 month cycle low which isn't due till July 2013 so has not quite the credentials.