Wednesday, December 2, 2009

Today's Market

On the two charts above (as always, click for a larger image) notice that both are running into a lot of upside resistance. Also note that both are printing a series of very weak candles -- very small bodies with very long shadows. Note that volume is also down. These charts are telling us prices can't get above a certain level, indicating the upward momentum has dropped.

The IWCs -- the microcaps -- have already fallen from highs and are consolidating above the 200 day EMA. This tells us that risk capital is pulling back from the market.