Unfortunately because of software problems I still cannot draw new lines on the charts. So to begin with the daily Dow, last Wednesday the average advanced in a small range and high volume with a close at the top. The small range with heavy heavy volume shows that heavy selling was retarding the upward progress. Thursday was a reversal day on the highest volume in 7 weeks again showing strong selling. Perhaps Thursday was climactic on the downside and Friday we floated up as selling was exhausted. Friday's volume seems to high for that interpretation. Friday also had a shortening of the thrust. So we have shortening of the thrust following the largest reaction since this upmove began around 7800. I believe we might very well be seeing the up-down pumping kind of action that frequently marks a top or bottom in these markets. A stab at new highs followed by a failure to hold them would confirm this some time within the next few days. Stops on long positions should be jammed up regardless.

Looking at the hourly point and figure, a drop to 92 would put us in a hinge position. The flattening in th 5 min spx shows that we are running into supply.

Finally the intraday, from 9:45 to 10:25 we fall on good volume and relatively wide ranges, showing some ease of movement to the downside. The rally that begins at 10:30 is characterized by erratic volume and narrower ranges. It takes 2 1/2 hours to fully correct the 40 min decline just described. The supply is now stronger than the demand. Turning to the last and these days most important hour after the market is supported at 3:15 there is an attempt to rally which is squashed by supply. Even the last bar I have a suspicion is an upthrust where supply will again overwhelm demand.

Extreme caution for long positions is warranted.