Monday, November 19, 2007
The main issue with the SPYs today is they broke technically important support. They dropped, then rallied and finally settled lower. This support line has been around for the last 5 days. The longer the support, the more important its break.
The SPYs daily chart looks terrible. Notice the long bar, heavy volume and the fact that price is below the 200 day SMA. The shorter term SMAs are also moving lower. This chart says sell me.
The QQQQs are in a range between 49.60 and 50.40. They're bouncing around between those two levels.
The the QQQQs are still above the 200 day SMA and an important long-term trend line. The index is consolidating at these levels, waiting for a reason to move in one direction or the other. But we don't know which one yet.