Monday, March 31, 2008
With the SPYs, notice the following:
-- The market was in an upward sloping channel until a bit after lunch.
-- The market broke the upward trend in the early afternoon.
-- The market tried to rally twice through the 200 SMA but was rebuffed.
-- There is upward resistance in the 132.50 - 132.60 range
Notice the following:
-- There are interlocking trends/patterns. There is a triangle pattern in the morning. There is also an upward sloping trend channel that the market broke a bit after lunch.
-- The market tried to rally through the 200 SMA three times but was rebuffed.
With the IWMS, notice there are two patterns.
-- An upwards sloping channel
-- A downward sloping pennant pattern.
Also note the IWMS only reached the 200 SMA once, crossed over and then retreated.