Wednesday, October 14, 2009

Today's Markets

A.) Prices have hit a recent high. But it is a hanging man candle pattern. However, this is not the most predictive of candles.

B.) The EMAs are in a very bullish configuration: the shorter EMAs are above the longer, all the EMAs are rising and prices are above the EMAs.

Volume is a bit weak on this break-out. This is not fatal as no situation is ever technically perfect. But it is something to be aware of going forward.

A.) Prices broke out on strong volume. This indicates there was stronger demand than supply.

B.) Prices find support around the 20 day EMA

C.) Prices find support around the 20 day EMA

D.) Prices find support around the 50 day EMA

E.) Prices moved higher at the end of trading on stronger volume. While prices did not end at the absolute high, they did close near the high.

A.) Note the transports are now below their long-term trend line on weaker volume.

A.) Prices are below the trend line and have had difficulty getting above the trend line. Notice that as prices have gotten near the trend line, the candles have formed doji patterns. Also note that prices are below previous highs. In short, prices are not confirming the SPY's high.