March 29,2005: TD

After close analysis:

Wow! Talk about market imploding! As yesterday's action suggested, it was about time the market made a major move, and obviously it was to the downside. After a morning fake move to upside the market just imploded . This reminds me of 2001/o2 where every morning market would fake to upside then slide down for rest of day! Nothing different about this one. The multi-day pattern was breached to the downside on all indices and if there were any doubts about what direction the trades should be taken yesterday provided good reminder. So now there's retracement out of a breakout and also AB and ES areas mentioned yesterday are here. No early trades in the morning cuz of traps. So afternoon trading will be my plan for tomorrow.

Market breadth ended very weak for the first time in quite some time. Vold hit a low @930 which is quite strong and breached multi-day lows. Add and Addq same story with Addq having 4-feathers pattern. It takes extreme readings like this to get a bounce to the upside.

Futures broke out of their narrow ranges today in a big way especially AB (wow!) - talk about 1 direction! NQ, ES, and AB are all below their emas with NQ retracing out of a multi-day wedge. ES200R certainly in -ve territory.

Indices provided some interesting patterns: Sox/Smh formed a H&S as predicted and broke down a tad so will watch tomorrow. Dow same story with a clear ascending channel breaking down below ema.

Overall positive day!