Friday, February 8, 2013

Morning Market Analysis

So far this month (which is basically this week), the SPYs have been consolidating gains.  The 60 minute chart (top chart) shows that prices have hit resistance at the 151.5 area with a rising base.  Also note the declining MACD for the entire duration of the chart.  The daily chart (bottom chart) shows that prices are right at support with an MACD that has given a sell signal.

The daily long-term corporate chart (top chart) shows that prices have fallen below the shorter EMAs and are now using the 200 day EMA for technical support.  The shorter EMAs are headed lower with the shorter below the longer and a negative CMF.  The weekly chart (bottom chart) shows that the technical damage is becoming more severe.  The long bull run is clearly over with prices breaking the trend at the end of last year.  Now prices are right at the 200 week EMA with a declining MACD and higher volume.  Also note the very weak position of the CMF.

The oil market broke the sharp upward trend this week, falling back to the 10 and 20 day EMA.  The 998 price level provided sufficient resistance.  The declining MACD indicates that a consolidation period is probably in order.