Friday, April 23, 2010

Yesterday's Market

Let's take a look at the difference between the IWCs (micro-caps) and the SPYs (large caps)

a.) Prices move higher on a strong bar

b.) Prices inch higher, buy print small, bearish bars

c.) Prices again move higher strongly

d.) Prices consolidate

e.) Prices again move higher on a strong bar

However, notice there is a consistent uptrend and the bars are all moving to a place.

With the SPYs, we have three boxes of price movements, but there is little strong direction.

This is why the smaller cap issues have been leading the market.