May 16, 2006: Cnsld

The market continued to consolidate today and it formed clear continuation patterns that shouldn't be taken lightly (as marked in red).

There was only 1 trade today on ER taking the break of the 3 humps pattern. Still a reliable pattern (thanks LBR :)).

For tomorrow I see some downward price movement based on the patterns highlighted especially BKX, semis & Dow.




Gold had some nice movement and b/o-ed from a slanted H&S and that was the trade of the day for me. It's creeping up and I wouldn't be surprised if it visited the previous b/o levels from H&S break at 705-7 area or so which also coincides with the 9sma and volatility stop which I looooove :)

Euro is still struggling with that 1.30 level. Notes is setting up a long on the 240min and I'll be there to catch it :)

Ok I'll need to get going on NKD. It's too much fun to ignore.