Tuesday, August 21, 2007

Today's Markets

The market was lacking in any direction today -- no trend lasted longer than 2 hours. The market consolidated at the open, rallied in the late morning, dropped and consolidated until 1 PM, dropped and then rose in the last hour and a half. Traders simply had no idea where they wanted to go. The good news is the market didn't drop. The bad news is we barely went anywhere.

Here's the 5-day chart. Notice we have a little 3-day trend in the making. We're moving up slightly. However, I would call this more a stabilizing move than anything else.

Here's the daily chart. The SPYs are still bumping up into resistance. Considering all of the volatility over the lest month, this really isn't a bad thing. The markets appear to be catching its breath from all of the craziness of late.