charts thread part 2, page-3

Interestingly McHugh picked up on the change of direction intraday on the Thursday and sent out an email in the middle of the day pointing out what was happening, as per the extract below:

It looks to us intraday Thursday that the Industrials may be tracing out a triangle pattern for submicro degree wave {b}, which is a sideways consolidation pattern, before wave {c} of 2 up takes prices another 4 to 5 percent higher.

The chart of this pattern is similar to what we showed in last night's Wednesday Daily Update for the NDX on page 13, still available at the Daily button at www.technicalindicatorindex.com .

Stocks fell at the open, then rallied sharply Thursday, the Industrials rallying 343 points intraday at one point. They are off their highs as this email goes out, likely following a wave {c} decline path within the triangle pattern mentioned above. No guarantees, but this is our take at this time. Triangles are characterized by violent reversal swings, with little forward or backward net progress, which is what we've seen the past two days.