We are not the first to observe that when the trend broke it resulted in an island reversal.  Like most market phenomena

it is what happens after the observable technical event that is significant.   In this case the island price curve doesn’t follow through to the

downside –which might be expected based on the strength of the wave up.

Our opinion and posture on the market remains the same: light long positions.  Also we have widened our scope a bit– that is

we are considering investments in the big techs — like Amazon, IBM, Google and facebook.  More on this later.