Friday, August 24, 2012
Morning Market Analysis
The top chart shows the SPYs daily chart, which has broken through support established a little under six months ago. The most logical price target is the 20 day EMA, which is right around the 140 level. On the 60 minute chart, notice that 140 is an important level from the last 30 days.
The treasury market has rebounded, moving beyond its downward sloping channel line. It is currently right in the middle of a Finonacci resistance area. However, so far this is merely a technical reaction to the treasury market's sell-off and the weakness in the equity markets.
Like most markets, the Canadian market is trading in a range right now. The ETC is moving between the 24.5 and 29 price level.
Also note the Canadian dollar is trading in a range as well.