Tuesday, October 19, 2010
Yesterday's Markets
Equity prices opened higher (a), but lost steam after about an hour of trading (b). Prices moved lower and found support just below the EMAs, where they started to consolidate in a triangle pattern (c). Prices then rallied through two important resistance areas (d) and (e).
Treasury prices gapped higher at the open (a), but fell the EMA's where they rallied but also found support at EMAs in two downward sloping pennant patterns. Also note that prices formed a curving arc for the entire trading session (c).
The dollar had two primary trends yesterday: the first was a confined and well defined downward move (a) followed by sideways consolidation (c).
Commodities had two strong moves higher yesterday (a) and (b). Also note that during the first leg up, prices consolidated in several downward sloping patterns.
Oil is still finding a tremendous amount of resistance around 84. Also note that momentum is decreasing (B) and may give a sell signal soon.
I'm wondering if corn is forming an island reversal (A). However, there is still a tremendous amount of positive data on the chart. The EMAs are all rising (B) with the shorter above the longer and the MACD is also positive (C).
Cotton has also been in the news lately because of its recent price spike (A). Note the momentum is decreasing a big (B), although there is also a very positive EMA picture (C).