Testy Tuesday – Drifting into the End of Quarter

Wasn't that fun yesterday?  There's nothing like a cool, refreshing dip to wake up a trader on a Monday morning.  I'm sure there were many, many newsletters that gave you trade ideas pre-market to short the Nikkei Futures at 12,600 that ended up being a $1,250 PER CONTRACT on the dip (12,350) and those guys probably also tweeted out, just like I did, at 1:21, that we shouldn't be greedy as we zipped past $1,000 profits in 4 hours, catching the final dip to 12,350 within 5 minutes – so I'm not going to brag about it…

As you can see from our Big Chart, our premise that we're simply consolidating into the End of Quarter on Thursday remains sound with all of our 5% Rule levels holding up so far.  Bad news for the Bulls is that the S&P is having trouble with it's 7.5% line on the way up – and that's not a good thing.  

Our other indices are holding on like champs with the Russell just over their 7.5% line, the Dow over it's 5% line and both the Russell and the NYSE right on top of their 12.5% lines so, in general, still very strong looking and still amazingly accurate for lines we predicted way back in March of 2009 – especially in light of these consolidations, which only serve to confirm the strength of our 5% Rule.