Ultra,I have come to a similar view regarding the XAO - an...

Ultra,

I have come to a similar view regarding the XAO - an ending diagonal, plus nice probable divergences between price and the MACD + RSI. I think next week could be interesting particularly for global markets as the bond collapse in the US is as bad as 1994 - except that in 1994 it took six months not six weeks!!

So I suspect that there will be some skeletons to come out of hedge fund or US investment bank closets given the swiftness of the move as there are sure to be a couple of portfolios that would have been caught by this move.

Lets see regarding the banks - whilst I have changed from a Bear to a Bull, I am probably best described as a wary Bull. All in all, the banks probably need a solid 38% to 50% correction of their recent gains to consolidate before the next move up and this bond scenario may well be the catalyst. If we see this corrective move take hold, I suspect it will be reasonably swift.

I must admit that Elliot has failed me regarding short term counts on the banks in recent weeks and the sooner this sideways mess clears up and I can get a decent fix on their positioning the better!!

Regards,

Jaysee