Friday, March 5, 2010

Yesterday's Market

In the Market Monday's column I wrote the following;

Are the SPYs moving into an A/B/C (up/down/up) pattern? Let's take a look.

The chart for the week confirms that we're in the middle of a standard A (move up), B (pennant/consolidation pattern) C (second leg up) pattern.

Also note the EMA picture that is evolving. The shorter EMAs are above the longer EMAs, all the EMAs are moving higher and prices are above all the EMAs.

This trend is confirmed by the underlying technicals:

A.) Momentum is increasing

B.) Money is flowing into the market.

The big wild card right now is the employment report.