March 28, 2005: Cnsld

After close analysis:

Wasn't feeling well so didn't trade. Same story: market bleeding to the downside with some chop and cnsld along the way. Should be noted that multi-day consolidation patterns are setting up and should have a break within next couple of days. 6bo is the only counter trend setup, other than that it's "shorts". ES's 1160 area and AB's 605 are the levels to watch for possible support.

Thought(s) of the day: Don't know why would one think that market will reverse all of a sudden and in the process discounting the fact that NQ spent 2 months in distribution and finally broke to the downside out of a dbl. hump ala 2000! Regarding currencies, paper account is up by 200ticks on 1 contract so far. The 4 hr. charts are worth following and it seems that position trades are something to consider vs. intra-day trading.

Market breadth spent all day in nr at lower levels that previous days. Nothing to talk about other than the 4-feathers pattern on Addq which provided a nice confirmation to a short trade on AB. Vold, Add, and Addq still in -ve xover.

Futures didn't do much today with NR all over the place. AB has been in a tight range for last couple of weeks (what's up w/that?!). AB found resistance at ema (as usual) and had a triangle break late in the morning. NQ and ES spent some time above their emas only to reverse by end of day. ES200R hovered above ema as well, but now in bearish territory. It's clear that YM and NQ have a multi-day pattern which will break (most likely to downside).

Indices tried to make something out of a fake move in the morning above a multi-day triangle with a clear dbl. bottom (Sox/Smh). Dow has formed a clear megaphone consolidation pattern and will be watched for a break.

Overall positive day!