Monday, November 26, 2007

Today's Markets

I'm going to present the charts in the following order: DIA, SPY, QQQQ, IWM. They all tell the same story. The indexes consolidated and then sold off on heavy volume.

Following are the daily charts in the same order. Notice the following:

1.) All indexes printed a bearish engulfing pattern today.

A chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one.

2.) All of the indexes' short-term moving averages (10 and 20 day) are heading lower.

3.) The SPYs, DIA and WIM are below the 200 day SMA.

4.) The QQQQs -- which had been consolidating until today - got a big sell-off indicating their post consolidation move is likely to be lower.