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On the three year chart we have a clear picture of prices moving lower, rallying and them moving through previous lows. This pattern has continued for the last year and a half during which time the market has fallen roughly 45%. Prices are still below the 200 day SMA by 15% but are above all the shorter SMAs.
The MACD is telling us the market is overbought.
The RSI is telling us prices are overbought.
The 6 month chart shows an bullish technical picture. Prices have moved through one downward sloping trendline and are just below a second. The 10 and 20 day SMA are both moving higher and each has already moved through the 50 day SMA. The SMAs are now in the most bullish orientation possible.
However, notice the drop-off in trading volume over the last few days. That tells us people are not participating in the rally as they previously did. Combine that with the longer-term technical information presented above and it could be argued the rally has petered out -- or is about to.
Next up is the QQQQs
