May 8: 2006: Cnsld

Nothing much happened today on the indices other than consolidation after the Friday upmove... From the chart one can see that market internals, VOLD/ADD/ADDQ were in the zone all day so most probably market action was going to be choppy and that's what exactly happened. BKX and Semis were weak as well. NQ is still below 1737 level so no bullish action.

For tomorrow, I expect more consolidation (day 3).


"Icicle" pattern followed by H&S is what I traded today on Gold. Another short trade on continuation was entered and that's all I needed for the day. I'm still in the camp of seeing top on metals and I guess that's the direction of the trades I'll be taking in the short-term unless super-bullish patterns show up.