whoa wednsday, page-5

Morning All Y'all,

As commented to a few others this morning...

For this morning, I am thinking that the XJO may gap up from current futures price with a possible level of up to 3620

From ther, or from open generally, I will be looking for short (downside) scalp options, with a bit of an attempt to hold a short possy open for longer term.

Although I am a bit leery of chart patterns, i note the 60 minute chart for the XJO has formed a good rendition of a head and shoulders over the last few trading days, and the calculated drop (from peak of head to neckline, subtracted from neckline to calculate drop) coincides with a previous support/resistance area that occurred at the 50% retrace (fib et al) of the previous decline from early jan 2009 high.

Thus a few things are lining up for potential further falls, technically, though close support at 3560 is one to watch as this is an area of strong attraction to price over the last two months.

I note that a couple of nesletters I subscribe to are attributing the US indices rise o'night to "window dressing" as a few heads have mentioned here...

I also note we had a huge smash down at end of day/aftermarket in the US suggesting this will ripple through to us today.

;)