Wednesday, October 14, 2009

Today's Markets

Which is actually yesterday's market, but who's counting? Click for a larger image

Yesterday's action was a clear consolidation pattern, with prices moving between upper and lower bands.

A.) Prices sold off hard at the opening -- note the long candles and the heavy volume.

B.) But prices rebounded from low levels and eventually rose to their opening levels.

C.) Prices then sold-off again, this time on far lighter volume. Also note the support that prices received from the EMAs. Prices did not reach the level of previous lows before rallying.

D.) Prices again rallied to opening levels.

E.) Prices sold off at the end of the day, but note that despite increasing volume prices maintained support at the EMAs. Finally prices rose a touch at the end on a large volume spike.