response to ninelives, page-18

XJO weekly is sitting right on the 38.2 retrace line. This might be the week my expanding wedge starts to misbehave if the fib line holds. If the Fib level goes (and I suspect tomorrow's dodgy start may do it) then the next target is the lower boundary. If that gives then the 4750 target a few people had earlier in the year, will be an easy target at 50% retrace.

One hopeful from this is the bullish wedge that is forming. Wedges (bullish or bearish) are more reliable than expanding wedges so the odds are slowly turning in the bulls favour. If however we break down from the bullish wedge (signifying failure) the bears will be partying. Downside targets from either a failed bullish wedge or a successful expanding wedge are very ugly for the market. It could even be argued that the whole topping process is an ugly head and shoulders as well.

Basically if that downward sloping line fails, I think we are in the sh1t, mainly because of high volatility levels lately.

I have my fingers crossed it holds. I'm happy as a bull or a bear but it's better for our country if I get to be a bull.