Mongo, I favour a fast move down into end of month as well. I...

Mongo, I favour a fast move down into end of month as well. I can sum up this last week in one word ...divergence. The US weekly candles look bullish...whilst ours, to use the technical term, sucks. Base metals got trashed this week and whilst they recovered a bit last night zinc is still below the last 15 month low. Meanwhile last night the US managed to break above the post august low range making a new post august low high, and we closed the week lower than the previous weeks open and the previous weeks lows for that matter.......

....The aussie market is usually very deft at anticipating the US direction and so often leads the way. The last time I saw this type of divergence was in April 2010 which was the last time the EU debt crisis raised its ugly head. The XJO peaked on april 15th and the US on the 26th....and for those 11 days in between, as I seem to recall, there were any number of HC posters reporting to us regularly what a bunch of pussycats Australian investors were. We fell while the US continued its last gasps of the rally.... But after the US peaked on April 26th how did that work for everyone I ask you ??

The reason for the divergence back then, and for that matter in Jan 2010 as well, was to do with fib time extensions of the previous bear market. Our bear was 495 days and the US 512 days thus creating a gap in the fib time extensions.

I suspect there is something like that happening now. I suspect it ties in with the 2009 lows, the april 2010 highs, possibly the lows that followed and the 2011 highs....but I haven't quite put my finger on it yet.

If the same is happening again then maybe when the US reaches its due date we will see a very fast down here and in the US just as we did in January and April of 2010.