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For those of you familar with Hayward and Connors' patterns, this week
set up an "Undeniable" sell signal (their name, not mine).  This set up
is when a market makes a six week high and then closes the week (week
one) below where it opened.  For the set-up to be complete, the market
must then trade below the low of week one.  Undeniables were set up on
the S&P 500 March Contract, SPY (Spyders), and on the Nasdaq Comp.  They
recommend taking advantage of this pattern by selling calls with a
strike price above the six week high.

As everyone knows by now, the markets failed at the previous high.  This
may or may not have serious implications, but a correction starts with
lower highs.  On the flip side, no support level has been broken.

The ADX on the S&P continues to fall, indicating a trading range (no
duh), but more importantly, low ADX levels often signify that the next
move may be a large one.

Finally, the Nasdaq Comp. has had "3 pushes" up on the daily chart.  I
believe this pattern was called "Three Little Indians" by Raschke and
Connors.  This market has since pulled back to the 20 pd ema, which
should act as at least short-term support.

FYI-

Bill Bancroft