The Sunny Side of the Street

Today's market just played "wait and see" again.  It took the form of another sideways day, but not a reversal day.  That shows me continued strength in the markets.  The chart in Figure 2 shows clearly how the Attractor at 26.81 held down any further advance today.

Figure 2- QQQ 15-minute

The likely move for tomorrow should be upward.  The will we or won't we question has now been answered--we have launched the attack in Baghdad.  While I have no idea tonight how most people will react from an emotional level, and emotion runs the markets, my guess is that the markets will react with strength. 

In Figure 1 you can see that the overhead Attractor on the Dow is at 8413, about 150 points away.  I am going to venture a guess that we will make that mark tomorrow. 

My TradeStation 7 crashed earlier this evening, wiping out all indicators and so I will have to download and rebuild it tomorrow.  Thus, I can't show you any charts with indicators.  I would like to be able to see just where ATR is at the moment, to see whether 150 points is more or less than average.

On a weekly chart of the Dow, we are still forming this huge, complex head-and-shoulders which I have been talking about for months. That formation calls for continued move upward until the right shoulder is complete.  Then, if symmetry is to be the next action, we should see some backing and filling between the 8100 and 7551 areas for a few months.

Figure 3- Dow weekly "head-and-shoulders"

For tomorrow, I'm going to tiptoe and carry a big stick.  Ready to abandon any trade at a moment's notice, I am looking for long trades at this juncture.

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