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Thursday, April 22, 2010

Thursday updates

The NDX is ever so close to testing final resistance. This is not what the bears need to see, the NDX breaking above 2055.82, and challanging the all time high!!!
This chart here is how the short-term count below fits in the larger picture.

After the close, WOW, that triangle I posted right after the open really played out nicely today, closing slightly beneath the upper trendline. Tomorrow will be the tell, if we open and sell-off the triangle still has legs, and if we open higher, the gray optional count will kick-in. The rally today looks more impulsive then corrective, but it is possible to put a corrective count on it. The Russell, also exploded to the upside today making new highs again, but the SPX has stayed flat, never making any major lower lows, nor higher highs, so I am keeping the trend at neutral.
Breadth for the day ended at 1.91:1, advancers, after the decliners had it up to 5:1, right after the open.
The VIX also closed that gap from the open, something I was not expecting with that reversal pattern that was a text-book perfect example of an inverse Island pattern.
Click here for a live, and updated chart!!!
7:37, I added a set of short-term bearish Fib fans,
Click here for a live, and updated chart!!!
7:30, The SPX could be building a large triangle now, framed in the neon green lines and labeled with the green letters. The counts on this chart might be confusing because I have multiple options going on, all together in this chart.
Click here for a live, and updated chart!!!
6:58, The SPX has support around 1085 from the Fib fans, and has overhead trendline resistance around the 1212, level. Click here for a live, and updated chart!!!
6:42, The VIX is displaying a perfect example of an inverse island reversal pattern, complete with the required gaps on both sides.


  1. Nice work.
    On the inverse island reversal pattern - what does that portend to tell?
    Thanks in advance.

  2. Thank you for your comments and charts.

    This feels like dip buying by the eternal optimist crowd. Bears still missing in action imho. Which is much different in character than the uber bearish sentiment driven correction in January. Could a trend change be sneaking up on us? As a contrarian and a bear (still) I like the way this is developing.

  3. Hey Smokeyeyed, Normally when a island reverse pattarn shows up, it means that there was an exhausion gap on one side, and a break-away on the other, and that is a topping bottom, or in the case of an inverted island, a bottoming pattern.

  4. The all-time NDX high is 4,816.35. It might be a bit misleading to suggest we're challenging that.