The markets rose last week. On Monday prices moved in an upward sloping trend line (see number 1). Then on Tuesday prices jumped to a higher level (see point A) on higher opening volume. Prices then moved sideways in for two days (see box 2). Prices again jumped higher on Thursday morning (see point B) and then moved sideways for the remainder of the week (see point 3). Finally prices rose at the end of trading on Friday on good volume (point C). This last point is important as it indicates that traders were comfortable keeping positions over the weekend.
Click for a larger image. Ignore the last candle.
A.) Prices are in a slight uptrend. There are also key points of resistance at points B, C, and D.
E.) Notice the EMAs are in a very bullish posture. The shorter are above the longer, all the EMAs are rising and prices are above the EMAs.
In the latest correction, notice that prices moved downward but used the 50 day EMA for support. Also note the correction was about 5%.
