Monday, January 21, 2013
Morning Market Analysis
The SPYs are in a gentle upswing right now. The 60 minute chart (top chart) shows the beginning of the year gap, along with the general tenor of the upswing. The 30 minute chart (middle chart) shows that prices consolidated between 146.5 and 147.25 for about a week, until they broke through resistance on Thursday. At the end of last week, we see the break-out, fall to support and then rally on Friday. The daily chart (bottom chart) shows that price are using the 10 day EMA as technical support. All the the EMAs are rising, daily volume is rising and money is flowing into the market.
At the same time as the stock rally we also see a slight treasury rally. The 60 minute chart (top chart) shows the IEFS selling off sharply at the beginning of the year, but moving slightly higher since January 4, rising about a point from 106.2 to 107.2. At the same time, the daily chart (middle chart) shows that prices have been declining since the beginning of December. Current market action is in fact a bounce off the 200 day EMA. And the weekly chart (bottom chart) shows that prices are moving sideways, approaching the 50 week EMA and contained from above by the 10 and 20 week EMAs.