The Sunny Side of the Street
Figure 1-- Daily Dow
In last night's commentary I said:
- "For Tuesday, I expect to see upward, though choppy, action. I think the QQQs are likely to move down to 25.66, pivot (bounce) at that Attractor, and head back upward. The indicators are showing strength but nothing magnanimous. So, that's why I expect slight back and filling along with the upward movement."
Today's market action followed along in lock step, first marching down to 25.84, stopping just barely beyond the Attractor at 25.89, but not moving as low as the 25.66 Attractor. The turn from that level was a great show of strength.
The next Attractor upward is at 26.37, and the QQQs headed right for it--stopping barely short of it at 26.35. Then came the choppy action, with the QQQs moving down, then up and then down again, with the final leg being up. (Figure 2).
Figure 2-- QQQ 15-minute chart
The show of true strength on today's chart is shown in Figure 1, if you will look at the prices sitting now on top of the downward sloping trendline. Today's price at the bottom of the bar went right down to the trendline, but never below it! That's strong, positive news.
Most of the time, right after April 15th, the markets pull back for a day or two to gather steam after tax day. I see no reason to expect anything different from the usual in this timeframe. So, for tomorrow I would expect a small pullback to the 26.09 line, with lots of churning for the rest of the day.
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