Tuesday, December 30, 2008

End-of-Day 12/30/08

At first, I was a little amazed at the magnitude of the finishing uptrend. In hindsight, however, I shouldn't have been surprised. During the midday, the market could not trade much below the 50% point of the morning's range. The finishing uptrend was just the completion of a 3-Wave market symmetry.

On the intra-day charts, I like to see at least 2 closes but preferably 3 closes above or below a pivot point to confirm the possibility of a trend to continue. Prior to 1000 ET, the market could not maintain more than 1 close below the early pivot on the above 5-minute chart, and the market then created a series of strong uptrend closes. During the midday trading, the market could not confirm the possibility of a downtrend, and the market just hovered at the 50% level of the morning's range. At the close of the market, we got confirmation of the continuation of a strong uptrend close.


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