Well we now have the channel edge at XAO 3550 as suggested...

Well we now have the channel edge at XAO 3550 as suggested yesterday if the channel break late yesterday was genuine. Of course, we now have big gap ups today, overbought in the short term and up against the key resistance at SPX850. So hard to see anything but back down to 3420 IMO from here. BHP now back up $6 to $26 in 3 days is a scary bounce IMO - makes me wonder how low IMO it is now going to go.

Assuming 3550 is the high for this bounce then if it fails then that gives 2850 now as the downside target (Thursday?). Or perhaps we hold the channel bottom at 3400 into the month-end then fall to 2850 in December with a 3000 channel bottom close then. Next 3 days should be very interesting.

Danube - yep. A big sharp bounce only means a big sharp fall follows. And the bigger the bounce the bigger the fall.