This is a chart of the IEFs (the 7-10 year Treasury market) for the last three months. Prices have revolved around the 200 day EMA, indicating that traders are still torn between bull and bear market tendencies. Over the last month a poster noted that EMAs were not the best technical indicator because markets tended to move sideways most of the time. The above chart is a good example of that tendency.
A.) Notice the large number of gaps in the chart. Trading has been pretty bumpy over the last few weeks. Also notice that most of these candles are small -- that is, the trading range for the day is pretty tight. That tells us that the volatility is coming overnight, but once trading starts it's pretty mellow.
