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[airedale88]

. INDU has declined to it's 4% lower envelope in one day. a 2.5 wk cycle low was due today but in no way was this kind of amplitude expected, which suggests some non cyclic effect on the market. we are also 47 months along toward a bottom of the nominal 4.5 yr cycle averaging 48 to 54 months over many samples. the NYSE breadth indicator that is part of the INDU envelope system will remain in positive territory (will post tonight). unless it drops quickly over the next few days to negative < 0, this method will actually generate it's strongest and most reliable buy signal. with 4.5 yr cycle status and a possible major buy envelope signal i think the combination will create a trading range possibly till summer. i'll post more on it tonight. stopped out of es's on the break of the trendline from my last chart, giving up 1/2 my gains. it happens. will look to enter long as smoke clears.

http://stockcharts.com/c-sc/sc?s=$INDU&p=D&yr=3&mn=0&dy=0&i=p41253685051&r=9993.png