Thursday, July 31, 2008
There was a lot of back and forth in the market today until about 2:30. The markets opened with a move higher, but then fell back starting about 10:00. Prices moved back to the opening level and them moved higher. However, about 1:30 prices retreated again. Note they didn't get quite up to the 10:00 AM level. Then they retreated again. I've drawn what could be the bottom line of a triangle formation -- it sure looks like it wants to be a triangle, doesn't it? Prices gapped lower with about 20-25 minutes left in the day and prices closed near lows for the day.
On the 4 day chart (the chart of the week's action so far), notice that prices have been rising since the opening on Tuesday. But today they broke trend and are now consolidating in a sideways move.
On the PAF chart, notice the triangle that is forming after the long downward move. Basically, the market is waiting for the next news item to move it one direction or the other.