Thursday, September 2, 2010

Yesterday's Market

Yesterday prices gapped higher at the open (a), hit the 10 minute EMA and moved higher (b) and then spent the rest of the day moving sideways in a tight range (c). Notice that prices didn't sell-off at the end of trading, indicating traders are willing to keep positions overnight.

Prices found resistance at highs from 8 days ago (a).

On the daily chart, prices broke out of the downward sloping wedge pattern and moved through the 10 and 20 day EMA. Also note prices printed a very strong bar on solid volume (a).

Treasuries were the mirror image of stocks. Prices gapped lower at the open (a), ran into resistance at the 10 minute EMA (b), bottomed (c) and then moved slightly higher.

However, the IEFs are still in a very strong uptrend (a), although prices are approaching important technical levels. For the last 4 months, the upward trend line in the Treasury market has acted as a natural selling point for stocks.

Copper had a strong break out, starting in the Asian markets (A). Prices moved through resistance (B), then consolidated their gains before the US open (C). Prices moved higher again, moving through resistance (D) and then consolidated again (E).

Copper consolidated gains in a downward sloping pennant pattern over a few weeks, but has broken out strongly printing some good bars (A). Note the EMAs are still bullish with the shorter above the longer and all moving higher (C). Finally, the MACD has given a buy signal (B).