WEEKLY CHART - CONTINUATION:

After failing to sustain above the 2008 peak subsequent weakness has now seen violation of first main support from the 2919 Feb-09 high and 2882 38.2% level.

This suggests bears have more to play for in due course, any s/term corrective bounce notwithstanding.

DAILY CHART - MAY-10:

The market has turned consolidative after testing/ eroding the 2813 Fibo projection (2.618 swing off prior 3245/3512 rally) which we had included in the 28th Jan Update. Note that the Feb-09 high on this chart was around 2800 - s/term support here is not a surprise.

A positive RSI divergence suggested bears were tiring.

We want to see a close above the 3000 area for a signal that a better recovery is underway - focus will then be on the 3220/45 area, 61.8% retracement and 28-Dec low, where good resistance should be seen.

We currently assume such a rebound will be the precursor to another bear wave.