Tuesday, November 2, 2010

Yesterday's Market

The QQQQs are now above previous highs, and are making new highs

The DIAs are near their yearly highs, and simply need a push to continue their upward trajectory.

The IWMs -- while below key yearly levels - are just below key resistance levels as well.

The Transports are also making new yearly highs.

The point of the above four graphs is to demonstrate the market breadth is hitting across all markets, not just the SPYs. In other words, the rally is part of all markets.

Also note that all the above markets are at or near key levels, indicating they are waiting for the Fed's decision tomorrow.

The long end of the curve has led the way lower. Prices have broken a clear uptrend and are moving lower in a disciplined downward sloping pennant pattern (a). Also note that money is leaving the market (c and d) and momentum is clearly negative (e).

Now the mid part of the curve is starting to sell off a bit. Prices have broken a long-term uptrend (a), money is leaving the market (b and c) and the MACD is moving lower (d).