March 23, 2006: Cnsld

The market didn't do much other than chop. That isn't surprising considering how VOLD behaved all day. One of the things I look at is VOLD when it is trapped between pivots that is usually a signal to take quick profits (very important rule) versus wait around to maximize gain - hit and run. Other breadth indicators also met resistance and that put a cap on any rally attempts.

The arcs on Dow in particular resulted in a retracement as mentioned in yesterday's post, but not so much on AB as it consolidated. It's important to understand the underlying patterns and implications.

The semis are offering an interesting scenario where they had a dbl triangle basing pattern today - that makes the case for a bullish scenario unless pivot of bottom triangle is taken out and a consolidation takes place below it. So far that hasn't happened so there is a good chance that semis will attempt to form a W and b/o or breakdown and breach the lower boundaries as highlighted in chart.

Naz couldn't overcome the resistance line highlighted in previous blog entry and MA acted as resistance. ES didn't fare any better and also had MA act as resistance.