http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=215498479

Here are some numbers to think about because we have certainly been thinking about them.  We have had a 50 day upwave, broken trendline and all.  We now have a moderately bizarre downwave of 12 days.  Over the past 8 or 9 days we have had 5 days of three digit moves.  215 points down, 189 up, 188 down, 158 up and so on.  During this time prices traversed a range of 868 points.  The net movement over the period was 102 points down.  Some of this may be day traders  (BIG day traders).  They see the market run in the first five minutes (or before the first five minutes) and they jump on it in the direction it’s going.  Meaning it’s Goldman and those guys.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=0&mn=3&dy=0&id=p49530602069&a=204730441

What is all this telling us, if anything?  Traders are extremely jumpy and the market is completely undecided as to its direction.  The dominant direction should be down, as we have a 12 day downwave and 2 broken short term trendlines.  Also there is an intimidating horizontal trendline up there that we just bounced off of.   It’s difficult not to think of the last time we had  a wave of 50+ days.  (Don’t think about it.)