Wednesday, October 17, 2007
Can you say roller coaster? The market sold-off from the opening of 155 to a mid-day low of 152.60 -- a sell-off of 1.55%. Notice the gaps down on heavy volume. That means traders were looking to sell -- period. However, the market rebounded and closed near unchanged.
However, on the three day chart, we are clearly in a downtrend.
On the daily chart, notice the SPYs are clinging to the 20 day SMA. If the downward trend continues there isn't much technical support until 152.50 followed by the upper 151s. Also notice the increasing volume totals for the last three says. Although the market would up unchanged today, it appears that traders may be getting more and more nervous and are looking to book some profits.
The QQQQs also pulled one heck of a about face in the market today. Notice that incredible curve on the trading action.
On the QQQQs daily chart we're still in a triangle consolidation on top of a moving average.
The oil situation -- Turkey's Parliamentary approval of military action into Northern Iraq -- is a big problem for the market's overall. Traders are trying to weigh the where oil prices start to crimp consumer spending. In addition, the addition of another military into Iraq is deep cause for concern for understandable reasons.