Friday, November 9, 2012

Morning Market Analysis

The 60 minute TLT chart (top chart) shows that the TLTs broke through resistance around the 124.5 area.  But on the daily chart (lower chart) notice prices printed a very strong bar yesterday on very high volume.  The MACD has also given a buy signal.  This is a flight to safety, plain and simple.

the GLD ETF continues its rebound, although yesterday's volume is disappointing for the bulls.  Bow prices are above all the EMAs with the next level of resistance the Fib fan just above 168.

The homebuilding sector has fallen through support just below the 26.5 level with the next logical price target the 50 day EMA.  However, notice the rising CMF.  This looks like a temporary sell-off that's in sympathy with the larger market as a whole.

The Russian market has broken its nearly 6-month trend line and is now below all the EMAs.  The shorter EMAs have crossed below the 200 day EMA.  The MACD is moving lower and the CMF is negative.  Put succinctly, this is a chart that wants to move lower.