xjo ... crunch time.

  1. 5,816 Posts.
    Hmmm... as previous post XJO took the anticipated (if only briefly...) breather at Fib(23.6%) at important 2885 level.

    Sustained by positive events in Iraq ahead of the belief that a big win here could kick-start the US economy ... perma-bulls rule it seems.

    Chart shows XJO about to breakout of what has been a nasty downtrend that so far has been unstoppable.

    Technically, XJO has spiked and is due for a reversal as profit-takers move in ahead of consolidation ...

    The previous major trading range had a support level of 2950 and any weakness tomorrow will see this revisited.

    Given the angst over war with Iraq that drove the Market thru the floor in the first place ... more upside is just as likely.

    In that event then the next test will be at Fib(38.2%) at a tad over 3000 ... an important psychological number.

    Those LONG will be nicely green with more to come.

    Chart looks like this ...

    Cheers ... tight stops.

    This is only my view ... read the red stuff.

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