Let's take a look at last week's market action. Click on all images for a larger image
First, on the long term chart, notice that (A) prices have broken through a long-term trend line that started in March.
Prices have also moved through the trend line started in early July.
A.) Prices hit the 50 day EMA and bounced higher. This is also the same price level established at a high point in August.
B.) The 10 day EMA is about to move through the 20 day EMA. This is not fatal as it is a short-term trend.
A.) Prices did not follow-through (move higher) after a strong showing on Monday.
B.) Prices dropped hard on high volume but rebounded. However,
C.) Prices moved through the same trend line again later in the day on high volume.
D.) As prices moved lower they continued to consolidate gains in upward sloping pennant patterns.
E.) On Friday, notice that prices had a slight upward bias. However, this can be seen as a long, upward sloping consolidation pattern on the way lower.