Monday, September 10, 2007

Today's Markets

The markets had a roller-coaster day. They sold-off in the morning, then formed either a cup and handle or ascending triangle formation around mid-day. They rallied from there, but sold-off pretty heavily at the end, printing a long downward bar on heavy volume in the last 5 minutes. According to the AP, the markets were happy with some of the Fed governor's speeches today. My guess is the article was specifically referring to Janet Yellen's speech:

San Francisco Federal Reserve Bank President Janet Yellen said on Monday that the current turmoil in financial markets has added "appreciably" to downside risks for the U.S. economy.

"Financial market turmoil seems likely to intensify the downturn in housing," and pose a risk to broader economy, especially consumer spending, Yellen said in a speech at the National Association of Business Economics annual meeting.

Here's the two-day 5-minute chart;

Here's the 8-day chart. Notice that although the market sold-off, it wound up closing near important Fibonacci levels from the previous advance.

Finally, here's the daily chart. Over the weekend, I stated I think the market is going to use the 200 SMA as a center of gravity until the Fed's meeting.