If you couldn’t figure out what I was talking about in the comments recently when I began jabbering about “9/36/15 cross-ups”, you can get an explanation on the new Lingo page that is now listed in the “Pages” section on the home page.

There are also new pages explaining how to put links, and code examples, into comments.

I haven’t had time to study my charts again today because I am still working on my new daytrading setup. It is coming along very nicely. I was using it on Wednesday when I spotted the 9/36/15 cross-up in FAZ. FAZ rocketed up about 10% from there. Thanks to George for this brilliant “cross over” tool.

I didn’t have time to study my charts last night, and am surprised to see the futures right back up to yesterday’s resistance. Maybe it was BAC doing their offering without a press release yesterday that spooked the market in the afternoon. That was very odd.

The dollar is plunging once again, and that of course is inflating stocks yet again. Bernanke’s grand plan will make us all rich – until we have start selling our stock to buy $20 a gallon gasoline.

Nailing the Top

Here’s Kevin calling the top after the Q’s topped on May 6th. In my reply to him, I though that the SPX would have another stab higher, which it did, but Q’s topped first.

Here’s BobD pointing out the importance of the January 7th gap in the futures as the SPX was topping on May 7th. Following BobD’s lead, here’s me suggesting that the market may have topped on the CME in Chicago, rather than the NYSE in New York.

The moral of the story is that the SPX actually comes in third, as far as importance goes. To forecast tops and bottoms, we should be watching the NDX first, and then the SPX futures. Don’t forget, the rally began when the NDX made a double-bottom back in March.

QQQQ Bear Flag
The QQQQ formed a bear-flag pattern on its daily chart last week with a sharp move down on Tuesday and Wednesday, and then a low-volume retracement on Thursday and Friday. Completion of this pattern could take the Q’s down to 32 soon. You will see similar patterns on many charts.

This is the pattern that I mentioned in the comments yesterday. When SPY fell from its February peak, it left behind a large un-filled gap on the 17th. It made three attempts to fill the gap over the next three days, failed, and rolled over (click chart to enlarge):

SPY just repeated the same pattern:

SPY tried to fill Wednesday’s gap three times, failed, and rolled over today. Wednesday’s gap wasn’t as large as the February 17th gap, but SPY has left behind an addition, sizable gap this time. Monday’s gap is un-filled also.

This is very bearish behavior. Don’t forget, it was many weeks before the February 17th gap was filled. Let’s see if history continues to repeat. On the fourth day of the sequence in February, the 20th, the market opened down on another large gap.

Three days of fighting to close a gap, and failing, is very disheartening for the bulls. Without a positive catalyst popping up over the weekend, the bulls likely won’t have much fight in them next week.