Friday, October 2, 2009

Markets Are In Sell-Off Posture

Usually I do a "Forex Friday" here. However, there are important technical developments in the markets.

Consider the following charts:

A.) The DIAs have moved through one key support line and are approaching another. This has occurred on high volume.

A.) The IWMs have moved through one key trend line and are approaching another on high volume.

A.) The QQQQ have moved through key support on high volume. In addition, the QQQQs were one of the primary reasons for the rally over the last 3-6 months.

A.) Prices of the transports have sold-off through two key trend lines on high volume.

A.) On both the bond charts notice that prices have moved about key resistance lines on strong volume. This indicates that money is looking for more safety right now.