Tuesday, October 28, 2008

Today's Markets

The main phrase I've seen with the today's market action is "bargain hunting." Here's the relevant chart:


Note the following:

-- Assuming the triangle pattern is how other traders are looking at the market, we've seen a consolidation occur for most of this month. Also note that today's action took prices through upside resistance and through the 10 day SMA. The next logical point of resistance is the 20 day SMA which looks to be right around the 97 level.

Here's a closer look at the triangle:



-- All the SMAs are moving lowerr

-- The shorter SMAs are below the longer SMAs and

-- Prices are below all the SMAs

In other words, it's a bearish chart still.