Thursday, December 20, 2007

Today's Markets

Finally! The charts are starting to make sense.

On the 10 day, 5 minute SPY chart, note the market has been selling off for the five days after the Fed's policy action (or inaction as the market saw it). However, the market bottomed two days ago and has since been forming a triangle consolidation pattern.

On the IWMs, notice the same situation, except the market formed an upward sloping broadening pattern. However,

Notice the IWMs broke out of the range right at the end of trading on heavy volume. That's a bullish sign.

With the QQQQs, notice we have the same sell-off, but a much stronger upward move after the market bottomed.

Also notice that prices are formed a triangle consolidation pattern with some heavy buying in the last two hours of trading.