(Click on the image for a larger image.)
On the daily chart, notice the following:
-- Although the SMAs are technically in a very bearish position with the shorter SMAs below the longer SMAs, the SMAs are very close together. Compare this to the technical position at the end of June/beginning of July when the 10, 20 and 50 had more daylight between them. The current orientation indicates a bit more confusion about what direction the market wants to go in.
-- Also note there is no clear long-term trend in place. Compare the current situation to the beginning of June/beginning of July situation or mid July to mid-August. The market simply has not run consistently in one direction or the other for a bit.
-- There are a lot of reasons for the market to move in either direction right now. The economy as a whole is not doing well right now. But there are signs a bail-out is all but done. That could give the market a shot in the arm to move higher.
