The intra-day pattern of the last few days on the 3 minute DJIA chart reminded me of a pattern that formed on the daily DJIA chart over a period of several months from Oct 2008 to the Mar 2009 low (after the 2008 crash). I don't know if this apparent fractal pattern will continue to follow the 2008-2009 pattern but, if it does, the markets should begin a rally soon. If the current potential basing pattern (that also follows a steep down leg, only on a very small scale compared to 2008) plays out, we should expect a 50% to 60% retracement of the leg down from the 6/21/10 high before rolling over again and likely breaking to new lows. There is also a 996 trading day vibration in the Nasdaq that hits today, 6/30/10. I covered shorts on the close just in case this confluence of time and possible basing fractal result in a sizable bounce. An exact match of the fractal projects to a low of 9754 on the DJIA, which was the low today. I think if we have an hourly close below 9700, the fractal pattern is most likely invalidated and I will reload at least a 25% short position.
Kim Rice 6/30/10
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