March 16, 2005: TD

After close analysis:

My, oh my! Did the market break down or what?! It was kinda expected based on yesterday's pattern and also daily.. Dow's waterfall was a giveaway for that matter and today the 10630-50 area proved its worth. Took the 6bo and a late day scalp for a minor loss (dunno why I even thought about it!). I do expect a bounce tomorrow and will have to pick my spots. It should be an easier day if it turns out to be another TD down.

Observations(s) of the day: 2 bar break on Addq gives a very good confirmation for entries.

Thought(s) of the day: Yesterday, I was thinking seriously about trading NQ as well for next few weeks. Its range is terrible but it's as smooth as silk.

Market breadth opened lower than prior day (and this is when I knew market was gonna be in trouble) whereby Vold trended down for most of the day. Add and Addq kept floating around before consolidating around noon then breaking down in the afternoon. All 3 still have -ve xover.

Futures were clearly down with NQ & ES being the stars of the day: NQ broke down from a multi-month consolidation and this ain't good for the bulls (what bulls!). Also Es had a massive multi-day H&S which broke to the downside. AB didn't do much and had a narrower range than the others. All clearly below their emas. ES200R amazing chart is clearly bearish.

Indices didn't do any better. The Dow just got clobbered (omg!) with SMH/SOX continuing to bleed! It's obvious when early morning strength is sold into the day ain't gonna be fun trading from the long side.

Overall positive day!