mmm monday, page-11

Amazing similarities between the XJO and the FTSE albeit with a time lag. According to Edwards and Magee the downtrend is confirmed when the index goes below the second bottom of the broadening top. On May 7 after the flash crash we saw the XJO confirm but also bounce off the wedge bottom...the FTSE did not confirm. The XJO then retraced up 38.2% before crashing through the bottom of the wedge The low this created coincided with the FTSE doing what the XJO did on May 7....FTSE has now confirmed as per Edwards and Magee but, like the XJO, first bounced nearly 38.2%. I am sure Selmax would appreciate the significance of Friday nights candle on the FTSE. So now I am thinking the FTSE will continue to follow the XJO and Paddington Bears dire outlook for post June 1 will be validated.

This piece of charting to me is beautiful poetry.....but if we were to ask a mainstream commentator to recite this poem they would more likely quote to us fom the Wall street smash hit musical "My Bear Lady" with "the drain from spain is mainly what's to blame...as the markets start to wane again...to cause us so much pain and drive us all insane" (did I leave out any rhymes ??)