TODAY'S ACTION

1-day S&P 500

We started out this morning with a gap down and formed a descending triangle. The moment we broke above 1,145, we were heading to a higher low. The rally was able to sustain itself until it formed a head-and-shoulders pattern. The day would have failed but Buffett saved the day. We then formed an ascending triangle to end the day.

3-day

If you look at a 3-day chart, you can see that the ascending triangle actually started at the end of Monday's puke out session. If we break 1,170, we should get to 1,225. If we break this triangle, then it's not good. Tomorrow will help clarify direction.

10-day chart