Nov. 9, 2006: TD (Down)

As mentioned in yesterday's entry I expected the market to retrace to the downside and that's what took place. It was a straightforward TD across the board. Market breadth, especially VOLD, didn't indicate such reaction. Nevertheless, the patterns on them were clearly on the -ve side. All indexes were trading below their intraday pivots which meant no long trades.

I was out and didn't trade today, but the 'woulda shoulda coulda' trade setup would've been a short on the second lower hi hump. This is one of the easiest setups to recognize and execute.

The charts (especially BKX) indicate more weakness in the upcoming session. I wouldn't be surprised if there was consolidation early on then continuation to the downside. The Fed are speaking later on so that will factor in afternoon action. No trading for me on Fri. afternoons.