The higher high candle today, on the Nasdaq daily chart, puts in a higher low pivot.  That changes the trend to the upside.  A loss of that pivot would change the trend to neutral.

The Nasdaq also has two gaps to fill on the 60-minute chart.

Today’s major drop had better be a headfake.   If the horned critters don’t show up with their white hats, and horses soon, this market will lose that crucial SPX 775.  Below that the next support is 500.  Ya… 500.  One day doesn’t make a market, but it’s really disheartening for the bulls to have 50% of last week’s work shot up in a day.  Possibly the market is just heading back to fill the Nasdaq gap at 1384.  Although I’ve been thinking that gap up at 1947 would get filled some time too.

Entering this market on the long side is similar to running through eight lanes of traffic in L.A. with a blindfold on.  You get whacked down on every other step.  Here’s an entry I tried in QLD that I let go of fairly quick after minimal followthrough.

I’m waiting for higher lows for entry on the long side.  QLD was down all morning and finally put in a reversal bar.  I waited for a pullback and bought the first higher high candle.  I was stopped out three bars and a whopping dime higher when it just wouldn’t push up.

I’ve said the last few weeks, if this market is going higher, it’s going to be the tough. Drops for13 days followed by market rallies with weekly gains not seen in years,  followed by crushing one day dumps.  How do you stay long that?