Equity prices opened lower, but rallied. However, after getting beyond resistance at the 20 minute EMA (b) they hit resistance at just above the 200 EMA (c). Price then fell, eventually hitting support at point (d) at level (e). Prices crashed through this level. They attempted to rally a bit after, (g), but managed no strong gains.
Yesterday, stock prices closed just below key technical levels (a).
In contrast to equities, bonds rallied, forming two upward trends (a and b), consolidating gains along the way in downward sloping pennants (c).
The dollar gapped higher at the open (a) and then moved slightly higher (b).
Yesterday, the dollars spike higher ran into resistance at the 20 minute EMA. Also note the volume spike over the last few days.
The dollar's underlying technicals are strong right now. The A/D line shows a flow of money into the security, the CMF is just turning positive and the MACD is about to give a buy signal. However, given the Fed's QEII policy, this is most likely just a counter-trend rally that will hit resistance at an EMA of Fibonacci level.
Commodities gapped lower at the open, rallied to between the 20 and 50 EMAs (a) and then sold off (b) for the remainder of the day (b).
