The area delineated by the ellipse shows a key reversal pattern on 3/8/2000. The market reacted to NY fall of 3% but managed to pare losses to close above the previous day's high. This signals the completion of the a wave of the corrective 4th wave pattern. The b wave now should take the CI to the 775 to 785 level with a c wave decline to the 880 region. Low volumes on this rally also signal the possibility of a right shoulder forming, which supports the hypothesis of a medium weakness in the CI. The MACD however has touched zero, giving longer term investors a window to buy and hold blue chips.
