April 3, 2006: U-turn

"Just another manic Monday....wish it was Sunday....."... Ok, enough singing.. Is it surprising that there was a U-turn on a Monday? Most Mondays are about cnsld and this one was no different: Market came back where it started.

Now, there're things that need to be pointed out. First, the Dow is clearly having trouble with the 'Diamond' pattern as highlighted in previous blog entries and today was a confirmation of that. This is a topping pattern. The Naz couldn't close above the magical 1737 level. That's bearish too. The ES couldn't get past the 1325 level I've been talkin' about for more than a year now.

First observation is how the Dow managed to rally in the morning and complete the 'W' pattern as highlighted in the last blog entry. Usually, when the day's pattern is an 'Inverted N' the following day it'll complete the last leg of the 'W' pattern and that's what happened!

Another market observation is the divergence between Vold and the Add/Addq. When this happens it usually means chop. In all cases regardless how the charts looked, I'll just step aside and watch... Yes, watch.