Post-Market Discussion For Thursday June 7, 2007

[Dogpile]

In a nutshell:

The bond market got crushed and the equity markets had trend days down. The market tested up early on in the session, off an opening gap down but this led to the highs of the day being made during the second 30-minute bar. There had been momentum lows on the 60 and 120-min timeframes on Wednesday and the market made more momentum lows today. The market did test the 15-min EMA late in the session and this led to a good short play back down.

Technically, the S&P's did touch 1513.50 on 6 different 30-min bars, my general guideline for a fat profile... but there is no hard & fast rule for what exactly makes for elongation vs fat profile. The fact that NQ, YM and ER2 all had trend days down seals it -- it was an elongated trend day indicative of eventual continuation.

That said, the market does have extremely high odds of touching the 15-min 20-ema at some point tomorrow. I will look for 2-way action in the morning session as is typical after a clean trend day.