Tomorrow, Tues 4/5/04 should be day of decision on the Equity Indices. They have been oversold for quite some time and have almost buried themselves into the support lines. If the broadening top formation is valid, they may get one more wave up to sucker in the bulls one last time before the Fed poses another rate hike and causes a sell off. If support does not hold then I expect the go short on the equity markets.
Points of Technical Interest
* The USD is reaching a resistance level at 85.20. It could double top here and give equities a much needed rally.
*S&P500, INDU, and the COMPQ have been building some bullish falling wedges. The S&P500 and INDU since late Feb and the COMPQ since January.
*The 2002 to 2005 rally on the S&P500, COMPQ and INDU are massive Rising Wedge Patterns. A break will drive them back to their 2002 lows.
Regardless of their massive Rising Wedge patterns there is still time before they completely collapse. So the Falling Wedges over the last few months may sucker people in for another few months before equities finally stall out. It's become high risk trading right now.
Note to self I'm seeing April 18th as an apex of several trendline ascending and decending.