The OEX did, very convincingly, exactly what it was supposed to do under the circumstances.

Today marked the second volume non-confirmation day in a row. But, with the FOMC meeting coming up, the OEX may still have more room to run.

Friday couldn't bring a resolution to the tight trading range, so the suspense will continue next week.







At the same time, the Dow finds itself at a critical juncture as well.

The line in the sand held, and exercised its magic.
The 1400 level is of equal importance but for the opposite direction.
A breakout above 1400 will clear the way to 1427-1430.
The main concern, however, is the relatively high barometer level.

For the e-mini, short-term, 1370 is the line in the sand.

Today's biggest contribution was a volume non-confirmation.

Some interesting patterns were completed by the end of the week,
just in time to coincide with the Gravity CIT.

The SPX just loves to paint itself into a corner.

Market action the last few days clearly illustrates the benefit of waiting for the time element to come into play, as suggested last week.

The SPX hitting all the "right" angles:

Here's another way of looking at the market:
bulls control the X's, bears control the O's

The first objective was achieved today as expected -- the market is oversold.
Now we are patiently waiting for the arrival of the second piece of the puzzle -- the time component.

The good news for the bulls is that at this rate the Barometer will be oversold by tomorrow. And, as I've mentioned before, one of the most bullish things the market can do, is to get oversold while moving sideways or in a narrow range.

Well, the Barometer did become overbought intraday, but not for long.




Interestingly, there were 5 similar six day trading patterns in 2007, of which 4 were followed by a decent pull-back, and 1 by a flat market. Let's see if things are different this time.

Following Tuesday's strong move, a lot of energy was spent just so the SPX can tag first resistance, while the Barometer is fast approaching overbought levels and VIX is dropping towards support.

In general, once the Barometer gets above 36, odds don't favor an upside breakout.

SPX: the current dilemma.

No wonder the SPX had to pause at these levels.

There are some interesting time counts associated with April 8th.




And a picture perfect close for the SPX.