QQQ

The dip early in the day was soon negated by a move up--back to the Attractor at 22.44, from whence we came.  There was about 3/4 of a point in that move for traders who saw the RSI undersold and then turn and pass upward through 40.  That made it possible to pick up a couple hundred dollars, but nothing like the old days.  After touching the Attractor at 22.44 without moving decisively beyond it, the market turned right back around at 12:15pmPT and headed back down toward the lower Bollinger Band, stopping just shy of the Attractor which now lies at 21.80.  RSI on the 15-minute chart is now at 41, and we'll see tomorrow morning whether that holds as support and we get a bounce, or whether we dip below into the bearish territory.

On the daily chart the RSI has been forming rising bottoms, so it looks like we will bounce off the 40 level tomorrow morning, moving the QQQs upward and continuing this bottoming process.  Average True Range hasn't been this low in...I don't remember when.  That speaks to a market that is about to make a move, after a long sleepy period.

The two cycles we have been observing are now heading downward together and so far the market is not exhibiting panic in the face of downward cycles, so I'm reading that reaction as strength.

$INDU

The monthly Dow is now back down to the Attractor at 8170, which was formed originally in 1997.  That in itself should afford a bounce.  However, there is a very long-term Head-and-Shoulders pattern the neckline of which has now been penetrated.  So, either we bounce from here causing it to be a failed H&S, or we are going on down to a measured move that takes us near 5,000 on the Dow!