Tuesday, April 24, 2012

Morning Market Analysis

Yesterday I noted that I believe the US markets are moving into a period of consolidation.  Today I first wanted to follow-up on that thought by looking at the longer-term Treasury markets.  Notice that, instead of falling (which you would expect in a rising equity market) the treasury market has moved sideways.  The IEIs are trading between 120-122, the IEFs between 102-105 and the TLTs between 110-121. 

Now, let's turn to four weaker foreign markets:  Italy, France, Japan and Taiwan.

All four of these markets broke technical support yesterday.  All are now below the 200 day EMA and all are in deteriorating technical positions (shorter EMAs moving lower, MACD declining).  The only good news on these charts is the fact that yesterday's price action printed small bars.  But, that is little solace.