 and that is a downdraft in the market folks of uh... one point the five percent inside the s&p uh... one point five in the dow industrials in one point one of the nasdaq now let's get over to our man mister basal chappan a bottom line i mean i'm at basal has a great news that opening call comes out every morning i'd get of the opening call for one month for a hundred forty nine dollars you get for six months for six ninety five which is a hot savings of a hundred ninety nine dollars at twenty two percent you get a full one full year for eleven ninety five which is a savings of five hundred ninety three dollars a thirty three percent now when you get his newsletter folks you get it get a huge amount of archives particularly twelve and you're gonna understand how basal looks the market every day and how we ride this wave basal chappan what's going on hi tom how are you i'm doing good how you doing i'm doing well thank you it's good to hear larry moments ago and of course these patterns as we were talking about last week how it's just amazing these fractals of human nature just get applied to the market so that you see that represented all the time it's in different time frames it's really fascinating isn't it and particularly you know because you're a musician also i mean that that is kind of i suspect that i never could read music but i think when you start learning music i that's kind of the first place that actually you know you can see right up down towards the whole ball of wax people will say to me how come you're a professional musician how come you got into the market and what's the connection i would say timing yeah yeah it's really timing so this is fascinating because you're talking about repeated patterns i always talk to you about the in the chapter we methodology we're always looking for at least in a buy signal to buy mode upgrade there should be at least four higher peaks and those four higher peaks are alphabetized i'll just show this quickly here for those of you are new i try to identify the lowest bar then i sequentially count each successively higher peak alphabetically a b c d uppercase on the way up the can go to e f and g but d is really the objective is to get you to at least a d and then other techniques kick in so isn't this fascinating i spoke to you about this with in january made that peak d in the in the dow at 34,324 at 34,342 pullback sharply then another peak a b c d again just under the previous d that's usually not a good sign when you can't take out the left side high and then we plummeted sharply and then we had the spectacular rally from 32,500 well fascinating enough i'm going to go to the daily chart that i show subscribers every day the 120 minute chart did two things and one of the reasons why i said we're not doing we we had added at the day before the rally uh Wednesday of last week we went long prior to the market opening and we took a little bit off on the way up we actually were aggressive in the three times long dow and then i said i don't want to do anything else here because we've made that peak d right on the orange 200 this is the 120 minute chart on the right right up against the 200 period exponential moving average there's also an automated chaff made resistance level of 33,512 so we're just going to step aside here and see what happens well it's fascinating because talking about the and that was a peak d right there at the 200 period moving average in the 120 minute chart now look at this yeah i think you and i spoke about this but i don't think i actually followed through with with you but i did on my show every single day i've been saying in a buy mode and i've got everything in place for the dollar that the dollar has made a peak c and my everything about this the mac d the stochastic the buy signal to buy mode said we should get a leg d above 105.36 i should also mention uh subscribers all along the dollar for a long time now and there it is today we got that d and i'm always fascinated about you know what what what were the techniques that should say to you that the dollar under these conditions should suddenly spike up and yeah we got it so i'm always fascinated how it actually unfolds when you know that's the objective it's not a guarantee it's just an objective right there it is and so this d coincided together with the short term a little bit of caution that i had um in the in the overall market i must say that the steepness today was a little more than i anticipated in that i thought we would get the d in the in the dollar and then pull back a little bit and that would give me the real test of whether or not the dow is going to go much higher so this is going to be a very important moment because the way the dollar's moving here it's kind of aggressive it's only the dating chart but you can see on the left side it's got a high right there on the 6th of january at 105.63 and today's high is 105.65 and i also have a time a time price sequence that goes to today so i'm going to see whether or not tonight when i do my analysis if i see a correlation between the weakness in the euro the strength in the in the yen for the for the dollar relationship but what really is fascinating to me is that we've got so many of these double bottoms and in i wanted to go to the TLT yeah we're looking at on my show for weeks i've been saying the 99 level is really important the let me see if that can come up there it is the TLT which is the i shares treasury bond ETF made a low look at this right here made a low on the around about the 27th of january at 99 and then run it all the way to the 100 809 area and then it made a little double top and a whole thing about this is look at these three sequences in the TLT when you can go to december the 7th it makes a high of 109.68 you go all the way and you pull back sharpening to that 99 area and you go back where to to 108.77 within a dollar you pull back again you go back to test again and what does do it goes to 109.35 the way these levels from not just months it's almost for a year now i've been following different patterns where the price goes back to within pennies sometimes of the previous high so that makes this 99 area really important because we went we tested it twice on the 28th of december tested it again on the 30th ran all the way up to that 100 809 level now we've come back five days and four days ago we tested at 100 99 at 99 and now we're running so this is going to be very important because if that 99 level goes in the TLT it means it yields again to go even higher so i'm watching a lot of things with double bottoms and double tops and i think what we've got here is very selective we are still long selectively worked out very nicely so far but not getting aggressive got raised a lot of cash got that cash ready to put to work i just think we're in a trading band if you look at the the Dow INDU there we are look the Dow stuck in a range it's been in this range look at the weekly chart in this big rectangle formation i think all these uh all these indices are in a range and we'll see if the lows are taken out the lows that were made last week because that's going to be important and folks it's very easy to get Basel's newsletter come over to our website at TFNN you're going to go on to newsletters you're going to see the opening call on the left hand side just hit that subscribe button Basel you have a great one a safe one of course we look forward to show tomorrow morning thank you very much Tom thank you stay right there folks we'll come right back