Technically the chart looks like the SPI wanted to take out the...

Technically the chart looks like the SPI wanted to take out the gap it left the day prior which it did successfully. The move also tends to sucker in those who have bullish tendancies- its rebounded every other time this will be a good time to get in etc. It happened often during the reversal in the tech boom - I know i bought on the dips!


Resources gap up and take out all those who added to short positions yesterday . . . Base metals look really overextended - check out silver- -- huge moves up with an ever increasing angle of acceleration.

The DOW looks bearish obviously, however, the FTSE has yet to declare itself. If it falls below 6050 then it has failed to break out and will be under increasing selling pressure. The longer it stays above 6050 the more likely it will accelerate and head skyward. . . . FTSE is more dominated by resources like the XJO and we will also be beneficiaries.

Personally i favour the bearish view of the medium term global market, if only for the high stoch, RSI, steep incline of the driving forces - i.e base metals. HOwever if the FTSE stays > 6050 then i would reluctantly be a bull on the european markets.

IMHO
kman