wasted wednesday, page-47

OK Martis, I think the XJO is going higher. It looks to me like it's in an ascending triangle and that by it's very nature is bullish - pushing up on the same level time after time while making higher lows on the retracements. The long lower wick and high volume at the start of the ascending triangle was very telling about what the market thinks is "good buying" and then the consequent higher lows which formed the ascending triangle.

We've got very strong positive divergence on Accumulation/Distribution which shows there's underlying buying.

We're currently below the 200MA which is bearish short term, but we are approaching the lower band of the ascending triangle so I expect it to bounce from there pretty solidly.

Stochastics are way oversold and we've almost always had a strong bounce when it's hit this level.

MACD is bearish short term but histogram isn't making a lower low.

At the end of the day though, we are exposed to all kinds of volatility fundamentally so really it could go either way. But are we totally bearish? Heck no.