Yesterday, prices gapped higher at the open (a), but fell into a tight trading range for most of the day (b). Note how the MACD gave very neutral readings for most of the day (e). There was a late day rally (c) on higher volume (d), indicating that traders were willing to hold positions overnight.
On the daily chart, notice how the downward candles (a and b) have larger volumes than the rallies (c).
In the agricultural markets, notice that prices had a strong advance (a), followed by a sell-off (b) followed by a stronger advance (c) that crossed over important resistance (d).
Ag prices continue to move higher, moving through key resistance. Also note the EMA picture is still developing in a positive manner.
The euro -- the sell-off that started the current correction -- is rebounding. Notice the EMA picture (the 10 and 20 day EMAs) is rebounding and the 50 day EMA is neutral.
But, the A/D and CMF lines are still bearish (d and e), indicating we're not seeing a big move into this area of the market yet.
Although industrial metals have broken through resistance, they are now in a trading range between 17.60-17.80 and 18.80-19.00.
However, notice that we're not seeing a big volume move into this market yet, as the A/D and CMF lines are still very negative.
