The above chart has one purpose: to show that the market has not been able to get above the 110/112 area. That tells us there is a fair amount of exhaustion in the bull camp.
This daily chart shows the same thing but from a, well, daily perspective. Notice that prices are finding a large amount of resistance in the 111/112 area.
A.) On Friday, prices gapped higher at the open and then attempted to move higher. But prices could not keep the upward momentum.
B.) Prices then retreated on high volume.
C.) Prices remained in a subdued mood for the rest of the day.
What's important about this chart is that Friday the rally should have started early and continued all day. The one thing dogging this economy has been jobs. And Friday we learned that the pace of job losses is decreasing. We also learned that previous months job losses were revised lower, temporary hiring (a leading indicator) increased and hours worked increased. In short, this was the best employment report we've seen in a long time. The market should have screamed higher. Yet, it fell. That tells us the bulls are really tired right now.
