Thursday, March 3, 2011

Mid Cap 400 Index shows recent distribution...

and a potential counter-trend bounce pattern where the 1st wave equals the third wave just underneath the previous highs. The index does not have to trade up there to fulfill the C wave, however, and may already be complete. When you look at the volume patterns this suggests that a view of the pattern as counter-trend is appropriate. I did not reflect an alternate count on the index in this chart.

Also, as a note, the other indexes have the same volume patterns.
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