Thursday, March 27, 2008
Yesterday the market's broke through an uptrend that started on Monday, March 17. Yesterday the markets traded in a range from 133.5 to 134.5. Today the market consolidated lower in a triangle pattern. Also note the market sold-off hard at the end. End of the day sales are never a good thing. It means traders are taking money off the table at the end of the day, or they are nervous that a bad overnight event could hit the markets.
The markets broke through upward resistance on Monday and peaked on Tuesday. Since then they've been trading in a downward sloping channel. Also note the QQQQs had a late day sell-off.
The IWMs broke their trend yesterday. Since then they have moved slightly lower, but it wasn't until the close today that they really fell hard. Again, traders are nervous about something happening overnight.