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With the one month chart, notice the following:
-- The market has enjoyed one heck of a run, moving from roughly 67 to 76.
-- Prices moved over the 50 day SMA but couldn't keep above it.
-- The 10 day SMA has crossed over the 20 day SMA
-- The 20 day SMA has moved into a horizontal position
-- The 50 day SMA is still moving lower
-- Notice there have been some incredibly strong bars during this rally.
The chart from last week shows a two and a half day rally that ended near the end of trading on Thursday when prices fell through the upward sloping trend line. Notice that during the rally prices formed numerous bull market flags to consolidate gains. The sell-off lasted for most of Friday and is most likely the result of natural before the weekend profit taking; no one wants to hold a position in this market over a two day weekend.
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