Three Days Of Rest

Futures fell 8 points after yesterday's post-closing high and have magically recovered. Odd behavior for a market that had just cheered earnings reports from Microsoft and Amazon. Or maybe its because people are starting to feel angst that Amazon still loses money.

The Dow got to a new rally high yesterday, and the NASDAQ, Russell, and S&P may be forming triangles. Unless the Dow kicks into gear and reaches a new all-time high, the triangles in these indexes may be terminal, meaning leading to the completion of their respective patterns.

In fact, there is a very large non-confirmation between the Dow and several major indexes, which should have Dow Theorists on high alert. In other words, the market is getting wobbly at a very large scale.

It is also showing very little sign of breaking down, so the 1778 target stands. Yet gaps are starting to go unfilled above as well as below. It took all day for the S&P to rally but not fill its gap at 1754.67. 1733.15 still waits patiently below. As do I. I wait patiently for the market to move after three days of rest. Who knows, it may still need another.