MDA - Market Direction Analysis

[LG]

RCKS: Do you see this as the key to bigger down to come and if given up again being resistance?

Yes and yes...this is a "major" trend line. The boyz chose to vault the line (using the MSFT pole) to get over it. In order to fill those gaps near term, the price action must drop below the line. I would suspect the only reason the index would be dropped below that line near term would be because gap fills are on the agenda.

Speculating, I don't expect the COMPX to blast off from here leaving the structure of the first leg up weak (full of gaps), but I could be wrong, I am not taking lightly that MSFT was used to clear the trend line in the first place. If we do see some of those gaps up filled in the near term (and I think we will), I expect to see the 9/00 FRL providing support again before years end or at the latest early next year.

As always, my views are subject to change as the market provides more input.

Regards,
LG