May 31, 2006: Cnsld

Market breadth was +ve all day so no shorts. Dow hovering around bull zone. The W patterns are underway so are the semis wedge indicating upside action. What bothers me is the N pattern on ES & NQ which usually resolve to the downside. 108 support level on BKX is the area to watch.

Everything moved in unison after a pre-market weakness on currencies, gold, and oil. Further confirms the correlation I've been talking about. BP & JY are usually better indicators than Euro in signaling nice swings. Gold broke the daily bear flag on very little volume.