The Sunny Side of the Street
WEDNESDAY NIGHT - March 12, 2003

Figure 1- Daily INDU [click to enlarge]

I started to say today looked like a "V", but on a second look decided it should be called a checkmark.  The morning went down relatively sharply, made a decided turn and went upward the rest of the day at about the same angle.  The difference is that on the three indexes I watch the 2nd half of the day went higher than the first half, ending with a positive day.


Figure 2- Daily INDU enlargement

In Figure 1 you can see that the bottom of the daily candle ended at the Attractor I had marked last week, at 7529.  It seems to be an important price level, as it was yesterday's pivotal price as well.  On the blow up in Figure 2 you can see that this is not a particular Fibonacci line, however, and that the full retracement would be down to 7224, or 7287 if price stops at the bottom of the previous candles.

Figure 3- INDU 15-minute chart

In Figure 3 you can see that today's high was yesterday morning's low (7551), which was again hit just before the last two bars yesterday afternoon.  So, that puts 7551 as an important Attractor in my book.
 
This afternoon's action was strong enough to turn my Dynamic Moving Average over and issue a buy signal, after almost three days of a nice sell signal.  On the QQQs the Attractor at 24.31 is just above today's close, which puts the closing of today lying out in a space that is open and without Attractors.  That is kind of funny looking technically (Figure 4) and makes me think that tomorrow morning will drift (if not drop) down to the Attractors below today's close.


Figure 4- QQQ 15-minute chart

The Attractor at 24.13 is also home to 4 pennants' tops and bottoms along the last few days on the line.  That also says to me that tomorrow morning will drop back to the line.  Since we have spent so much time lately doing the sideways Cha-Cha, the market will probably repeat that step one more time and move on down to 24.0 QQQ where the recent sideways action lies.  After that, I wouldn't be surprised to see the market venture on up to the 24.45/24.60 area QQQ where there is lots of previous activity from last week.  If it can't do that, then I'll be looking for another long leg downward like the last few days.

==<:>==
Click here to view the Sunday Night stock picks.
Watch carefully & stay on your toes.  Just when you think you know the answer, the market will turn on you.