weekend charting 14th-16th may, page-64

Hi KookeBoy, I'm glad you posted your thoughts about posting on the XJO thread as I share your opinion. As much as I respect and learn a great deal off those guys I think they tend to ignore simple trendlines and trends IMO. Often they are the best indicators as most investors/traders/punters use them as opposed to more complicated methods IMO, something like herd mentality I guess. I think basic stuff works well and has saved me on a number of occasions over the last year or so.

The concerns I have on the XJO are very simple. The index price closed 27 points lower than the Nov09 lows and 25 points lower than the Feb10 lows on May 7th. This to me is a very bearish sign and one that often goes unspoken, at least on this forum? I am generally a bull so I tend to go with what I see at the time but these lower lows are concerning for holding LT positions imo.

Here are some simple charts (monthly, weekly & daily) of the XJO, draw your own conclusions but they seem to fit in my eyes. Would love to hear from others more experienced then me.

In regards to my daily chart analysis (below) is Friday nights DOW! lol, after a hefty fall no doubt we will follow to some degree and slip under the descending green trendline which would muck everything up! lol, lets see how it pans out...

XJO Monthly chart with monthly slow stochastic. The monthly slow stochastic looks very bearish to me and has crossed sharply. The last time it did that was 07 highs which is a worry..



XJO Weekly chart with weekly slow stochastic.



XJO Daily chart with daily slow stochastic