Trail Mix Wednesday, page-51

Tuesday Evening Liqueurs. 6 September. 2016.

XJO down today -0.29%.



The Index remains at the lower edge of the trading channel. We cm expect a short term rise in the Index.
That rise, however, will likely be sold into.

The Bollinger Bands on the long term Stochastic (50.10.10) have recently narrowed down and are now beginning to open up. That suggests that the longer term trend will be down.

The short term Stochastic (14.3.5) has turned up (as have other indicators). That suggests that we'll see more upside, but, the longer term Stochastic's pressure will probably assert itself.

Here's a scenario. The chart of the XJO will continue to rise for a few days. While that is occurring - the 20-Day MA and the 50-Day MA will move closer and closer to a negative x-0ver. Just as that occurs, the chart of the XJO will start to fall - and that will be a signal that much more downside is likely.

Of course, my scenario might turn out to be a wishful dream. The chart of XJO might just bullock straight up through that negative x-0ver. If that happens - buy.

I feel confident in the initial scenario.

We'll see.

RB.