March 21, 2005: Cnsld

After close analysis:

More chop with tight ranges before tomorrow's FOMC. Nothing exciting in terms of setups or market action. Basically, everything is in bearish mode but w/very erratic PA. Only shorts at this stage and only counter trade would be a 6-bar b/o. I'm keeping an eye on breadth & semis tomorrow.

Market breadth was mixed. It's obvious that Add and Addq acted differently today with Add being the weaker of the 2. It's also that while futs made newer lows the Addq held and looked bullish. Something to watch for next couple of days. Vold was -ve but not too weak signaling any kind of blowoff action. Just a steady bleed to the downside.

Futures stayed below their emas w/no exceptions. Had a bunch of triangle patterns with weak b/o late in the day. Not much there cuz the emas are like the 'great wall of China': the ES200R is a great example. AB continues to trade within tight ranges, so is NQ and ES. All are still below their emas.

Indices consolidated during the day. It's worth noting that the descending channel on Sox was broken to the upside and the afternoon pullback was on the upper channel TL. Nevertheless, Sox/Smh and the Dow all remain below their emas.

Overall neutral day!