Thursday, October 18, 2007
The market's consolidated this morning and then rose in the afternoon. In addition, we now have a lower trend line for a possible move upward.
On the 5-day chart, notice the trend break that occurred with the upside move after today's triangle consolidation. For this to be a clear trend break, we'll have to have a clear upside move tomorrow.
However, on the daily chart the bar ran into clear upside resistance at the 20 day SMA.
On the QQQQs, we have a much wilder ride. Notice that after the three-day consolidation, we had another consolidation pattern -- the reverse head and shoulders. Then trading broke out with a strong move to the upside. My guess is this is Google related.
Finally, on the QQQQs daily chart we see a possible break of the flag consolidation pattern. Also notice that prices bounced off the 10 day SMA.