Tuesday, March 27, 2012

Morning Market Analysis

Let's start with the equity markets, where we see prices breaking through resistance, with the IWMs moving through the 82.6 level, the QQQs moving through 67.50 and the SPYs moving through 141.5.  All three are also showing rising A/D lines, along with positive CMF readings, telling us that people are moving into the market.

The weekly SPY chart shows that we're now gunning for the 143 area.  A move through there would be a post-recovery high and a very important market milestone. 

The QQQs are also showing a very strong weekly reading.  Prices are now at a post recovery high, with strong fundamentals.

The weekly GLD markets is still right at support.  The shorter EMAs are neutral -- the 10 and 20 day EMAs are moving sideways while the 50 week EMA is slightly bullish.  However, momentum is dropping, the A/D line is moving sideways and the CMF is beginning to print negative.

Dr. Ed uses the gold market as a proxy for runaway government spending/uncertainty/inflation.  I think that's a pretty good use of this commodity's chart, which of course leads to some interesting questions.  Why is gold weak now?  Are traders less uncertain?  Do they fear inflation less?  In short- - why is the GLD ETF trading at support right now?