Thursday, March 27, 2008

Thursday recap

We got the downside follow through we were expecting as a result of yesterday's late 10/20 MA cross.. With another 10/20 5 minute bar MA cross going into the close today , odds of a continued decline tomorrow are increased. The behavior of the 5 minute 10/20 MAs going into the close has been a good indicator of next day opens for several weeks now and I'll look to quantify the success rate of particular 10/20 patterns in this weekend's update post.
It looked another narrow range bar was on tap, but the late afternoon breakdown of support took the Qs down to S3 on a volume surge. . .another indicator of likely weakness tomorrow.

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