Gold was the big story yesterday. Prices are currently in the middle of important resistance levels (A) and are almost through them (B). We've even seen a small bump to momentum (C). Ideally, we'd like to see some strong follow-through tomorrow.
In contract, we have the lumber market. After falling earlier this year (A), prices have been consolidating, forming a very strong base (B). Obviously the housing has a great deal to do with this market, and the housing market's current slowdown is not helping lumber prices.
SPY prices are currently right at the top of resistance.
Also note that as prices have advanced to the top of the range we've seen the bars get smaller. Notice the progression to smaller bars between circles a, b and c.
Yesterday, prices consolidated in a triangle pattern between lines A and B. At the end of trading, we saw prices break to the downside on heavy volume (C).
In the Treasury market, prices gapped higher at the open (a) then traded sideways into the EMAs (b). Prices then started a gentle but consistent upward move for the rest of the day.
Finally, the cattle market -- while still in a rally (A) may be done consolidating (B) and move higher (C). Also note the MACD is about to give a buy signal.
