us banks smashed, page-2

hi jaysee,

the xao finished the week with a new high for 2003, but also with a lovely ending diagonal. IMO, this means a very high probability of a big fall for the xao over the next days / weeks. I think the banks all dropping would be consistent with this outlook.

I'm still cautious the banks, however. While all of them have room for a fall, in the mid-to-long term it looks more likely to me that all of them will head up, rather than down.

As previoulsy discussed, if the CBA gets below $27.90, then everything changes. I'm waiting to see how things pan out for CBA, given its clear 13 week alternation between highs & lows - it should post some sort of a low going into Sep 2003... but if it starts going down now, it's going to be a battle for it to stay above $27.90 in the next 9-10 weeks.

Regards,

Ultrafart.