Tuesday, February 19, 2008

Today's Markets

The big news today was oil closing above $100/bbl. That sent all the indexes lower.

Notice that once the SPYs broke lower, they did so on heavy volume. Also notice the index closed near the daily lows, indicating traders don't want to hold anything overnight.

Like the SPYs, the QQQQs broke lower on heavy volume after oil closed.

The exact same thing happened to the IWMs

On all the chart, notice they all opened higher but couldn't hold onto the gains. That indicates concern.

On the daily charts below, notice we're still in the middle of a consolidation for all the averages. I added a second lower trend line for the IWMs. Also note that on the SPYs and IWMs we have decreasing volume, a classic pattern further confirming consolidation is occurring.