Tuesday, September 2, 2008
Not a good day in the market. The market opened with an upward gap -- meaning prices opened higher than where they closed on Friday. However, prices started moving lower fairly quickly after that. A little before 10 prices were bouncing off the 50 minute SMA. Then a little after 11 AM prices moved through the 200 minute SMA at when time all the SMAs because sources of technical resistance rather than support.
Also note there were several downward gaps on today's chart. These are very bearish developments.
The reason for the morning's opening higher was oil was down big. But that wasn't enough to keep everybody happy.