Friday, September 7, 2012
Morning Market Analysis
Yesterday, stocks rallied hard. The top chart shows the 5 minute chart, where we see stocks rallying until around noon and then trading sideways for the rest of the day. The lower chart shows the daily chart, where prices rallied strongly on decent volume and moved through key support levels. Ideally, we'd like to see prices follow-through tomorrow with another strong day on high volume.
The two lower charts show the IWMs (top chart) and QQQs (lower chart) confirming the breakout of the SPYs.
The good news is the Italian market (top chart) and Spanish market (bottom chart) also broke out, indicating traders think the EUs bond buying program will greatly aid these two struggling economies.