Thursday, August 21, 2008

Today's Markets

Let's look at the macro environment to remember where we are:


Since the end of last summer, the market has made a series of lower lows and lower highs -- a standard bear market formation.


On Monday, the market fell through the support line started in July. The market is consolidating below that line. Notice the following:

-- Prices ran into the 50 day SMA today and fell back

-- Prices moved through the 20 day SMA

-- Prices are still below the trend line started in July. The longer they stay below this level, the worse off the technical side of the market.