Feb. 28, 2005: "V "

After close analysis:

Was out for most of the morning so didn't trade. This was a great month, just like Jan. where volatility picked up and provided nice returns. No surprises today, which capped a great month (close to creating a million dollar baby :P): market was overdue for a pullback, and got a steep one. One could tell that market was setting up for a pullback just by looking at how NQ opened below it's ema, followed by morning cnsld then breakdown. There were 3 nice trades I could've taken, 2 of them were setups: 2 bo and later a 6bo which hit its objective. I see more consolidation on the way.

Observation(s) of the day: retracement to morning b/o point which halted further advance. Also Dow's inability to gather steam and poke thru 10850-75 area (bull/bear levels). This is what I'm following and the market has shown its hand in terms of what levels will decide on the next big move!

Market breadth was -ve for most of the day. Vold, Add, and Addq all opened below previous day's range and went downhill from there before retracing later in the day. Vold on the decline was lesser than that seen on Friday's upside move. So, for now it's a pullback until further notice.

Futures were in unison. AB, ES, NQ had a cnsld day. AB & ES bounced off their emas and retraced to morning b/o pt. The so reliable ES200R closed in bullish area.

Indices SMH & SOX and Dow pulled back and bounced off their emas (amazing how scripted some of this action is!). One can see clearly the H& S on Dow setting up this morning and breaking down. This is one of the most consistent patterns on Dow (more on that later), and I've followed it on Ed Down's Dow analysis. It's very clear that the 1085-75 is "the" level: still think if Dow musters some firepower it'll make an all-time high if it gets over this hump.

Overall neutral day!