Thursday, November 19, 2009

Today's Market

I've spent a fair amount of time explaining why I don't like the current market. This is another post along those lines.

Click for a larger image

A.) On November 9 prices gapped higher, printing a strong bar. That's the kind of event bulls like.

B.) The prices clustered in a very narrow range, printing three very weak candles. This is a terrible way to follow-through from a strong up day.

C.) Prices can't gtet above the 111 level in a meaningful way. They try but just can't get above the level with any momentum. This is followed by today's action which was a sell-off.

The EMA picture is still bullish. But notice that prices just aren't moving higher with any conviction. Combine with with the weak performance by the Tranports and microcaps and I'm just not impressed.