April 13, 2006: Cnsld

As mentioned yesterday I expected the market to b/o in the morning and it sure did especially the BKX, Naz and to some extent ER.

One can see why ER topped for the day as highlighted on the chart - cuz all indices hit major levels of resistance Naz 1737, ES 1300 and the Dow a prior b/o level... These tops are easier to short since there's confluence but the system I'm trading wouldn't allow it..oh well :P... There was a short entry on the Dow which was much better than ER on the short side which coincided with resistance on ADD and breakdown on NQ and ES...safe and low risk trade..

The Dow remains to be the key to this market so far, so, based on its chart there are couple of possibilities I see: 1) form a right shoulder to complete another major pattern in same area!! 2) reach bottom of range and then bounce back up to form a W..


As far as commodities the scenarios mentioned yesterday played out...Gold broke down then bounced up...Wheat and Soybeans are in bearish patterns and today continued to break down...Notes was very good and presented couple of shorts....one of them was in Globex and I'll be participating in that early part of the day moving forward.