Notice that equity prices found support at the opening from the price gap higher four days ago. This illustrates the rule that "markets have a memory."
Yesterday, prices moved higher at the open, but soon hit resistance at previous highs (a). Prices then started moving lower, forming several counter-trend moves (see b, c, and d). However, the overall trend for the day was clearly lower.
On the daily chart, notice that prices have moved above key resistance, but are now moving lower. Ideally, prices should find support at the 10 or 20 day EMA. This type of consolidation is normal; it shows that traders are taking profits form the recent rallies.
The long end of the Treasury market -- which had been forming a downward sloping wedge (a) -- fell through the 200 day EMA today (b). This is the line between bull and bear market.
The dollar's 5 minute charts shows a clear reverse head and shoulders pattern. Prices have moved through the neckline in a counter-trend move.
