Friday, September 14, 2012

Morning Market Analysis; Post Fed Wrap-Up

The SPYs have had two strong rallies this month.  The first occurred on the 6th, after which prices consolidated for a week.  Then yesterday prices again rallied.  Notice the very strong volume readings for the session.

On the daily chart, we see a very strong price bar printed yesterday on a large volume spike.  Note the continuing bullish orientation in the market.  Momentum is increasing, prices are strengthening and the CMF is rising.

While the QQQs (top chart) did not confirm the rally the IWMs (lower chart) are.

For both of these charts, today will be an important trading day.  Ideally, we'd like to see the rally continue and for the QQQs to break out.

After spiking in mid June and ending their rally in mid July, prices have been moving sideways, consolidating gains.  Notice the declining MACD, which is typical for consolidation patterns.  Also note the declining strength in prices -- which is relative.

Gold -- which was rallying -- had a strong jump yesterday on very strong volume.  Also note the underlying strength in the market -- rising MACD, CMFs and EMAs.

Finally, we have the declining dollar, which is now near six month lows and in a clear downtrend.