how the market moves

In September I picked the XAO top to within a point.

It was because it went within 1 point of double the 1987 high. I don't say this to boast but to set up the way the XAO moves.

If you draw horizontal lines every 1150 pts up from zero you will be amazed.

From 2300 down to 1150, then up to 2300 then 3450 then 4600. This is in round numbers of course.

So the next target is 5750 at some stage.

If you split those increments in half, 575 pts, then you will see these are reaction spots or congestion areas.

Not as exact but worth watching the area. The next area then to watch is around 5175 which I believe is McLaren's max target area for this index.

I have made the 575 lines dotted.