Sunday, December 5, 2010

Yesterday's Market

Considering the disappointment from of the jobs report, Friday's chart is actually decent. Prices moved sideways for most of the day, consolidating in a rectangle pattern (a). Prices broke out in the late afternoon, trading right on top of important levels (b), before moving higher into the close on increasing volume (c).

On the daily chart, prices are right at important resistance levels (a). Also note the EMA picture is bullish (b). The A/D and CMF confirm that more money is moving into the market right now (c and d) and the MACD has given a bullish buy signal (e).

First, on the IEF chart, notice that prices have continued to run into upside resistance at the EMAs and Fibonacci levels.

Treasury prices gapped higher at the open (a), but fell quickly and sharply. They attempted to rally (b) but the MACD indicated the rally was on weakening momentum (c). Prices continued to move lower throughout the rest of the trading day, hitting resistance at the EMAs.

Treasury prices continue to move lower (a) with the EMAs printing a very bearish picture. Also note that money is flowing out of the market (b and c) and momentum is clearly bearish (d).

After breaking the upside trend (a) and moving lower for two days (b), the dollar gapped lower on Friday (c).

Prices hit upside resistance at the 200 day EMA (a) and have since moved lower (a). Prices are now finding support at the 50 day EMA (b). Note the A/D line has printed lower (c) and the CMF is also showing money moving out of the market. Also note the MACD is also about to print a sell signal (e).