Tuesday, February 24, 2009

Today's Markets

Click for a larger image

Let's look at a longer chart to put today's action in perspective.

-- The current downtrend started with a big gap down last Tuesday.

-- Prices levels out for a few days.

-- But prices started to move lower on Thursday, Friday and Monday continually moving through old lows

-- Today, prices moved through previous resistance and are now on top of all the SMAs. Prices are are above the 200 day SMA.


On the daily chart, notice that prices have some room to move higher before they hit resistance (namely, the 10 day SMA). If prices hit this and then continue to move higher, we'll be in a trend reversal. However, until that happens, we're still in a downtrend.