Monday, December 24, 2007

Last Week's Markets

As we go into this holiday shortened week, let's start by looking at what the markets did last week.

The SPYs dropped on Monday and Tuesday. They then consolidated in a triangle consolidation pattern on Wednesday and Thursday before breaking out with a big gap up on Friday.

The QQQQs dropped on Monday and Tuesday, but broke out a day sooner than the SPYs on Thursday. Also notice the QQQQs gapped higher on both Tuesday and Wednesday.

This is by far the best chart of the week. Notice

-- the upward slanting consolidation pattern, and

-- the strong gap up on Friday.

I'm not expecting must to happen this week, largely because it is a holiday shortened week with far fewer people trading. That doesn't mean something won't happen; it's just far less likely.