Thursday, December 8, 2011
Over the last few days, I've expressed concern about the rally in the markets, largely because the overall price action has been weak and the volume low. Yesterday's action confirmed my concerns with the market printing an extremely poor day. Prices have moved through the upper trend line of the consolidation triangle.
The above chart shows that after a decent rally, prices stalled in the 125-127 price area. However, yesterday, prices moved lower, breaking support.
Prices gapped lower at the beginning of the session and continued to move lower throughout the day. They rallied into the 20 minute EMA, and attempted to move through the 50 day EMA, only to fall into the close on increasing volume.