XJO Chart 4/2/2011

Here's a chart today of the XJO (ASX200).

The upper oblique restraining line has held upward movement in the Index since early September 2010 - except for one day back in early November. The Index briefly stuck its head above the trenches - and was quickly shot down.

Now - resistance is just resistance - not a brick wall. But the market is now up against resistance, once again.

If you look at my previous post, you'll see evidence that some big players have been positioning for a down turn. They may be right - or they may be wrong.

If the market does poke its head up above the trenches once again, what's the betting the head will get shot off once again?

I think the probabilities lie to the down side.

Good luck

Red