Saturday, March 1, 2008
Last Week's Markets
The SPYs rose until late Wednesday when they clearly broke their uptrend. The SPYs dropped for the rest of the week. There were several gaps down and the market closed the week on a low point on heavy volume. This is a very bearish last few days to the trading week.
The QQQQs formed a triangle consolidation (technically this is an ascending triangle because the bottom is, well, ascending) on Tuesday through Thursday. Note the 45.50 provided a great deal of resistance to the rally. Once the QQQQs broke through support they dropped hard. Notice the large gaps down and the fact the market ended near the low point for the week on heavy volume. This is also a very bearish chart.
The IWMs formed a double top on Tuesday and Wednesday. Then they dropped hard for the rest of the week. Notice the gaps down and the fact the index closed near its weekly lows on heavy volume.
On the daily charts notice the following:
The SPYs and QQQQs are still stuck in a trading range.
But the IWMs have broken lower.