Monday, May 5, 2008

Today's Markets

The big news today was Microsoft pulling its bid for Yahoo. I should add that I often refer to Microsoft as the Satan just so everyone knows my bias. Oil hit a record as well before settling a bit lower. We learned that lenders are tightening lending standards and that the service sector expanded a bit. There were also conflicting stories on Sprint: either it would sell itself to Deutsch Telecom or it would split itself up.

On the SPYs chart, notice we the trend trading from Monday to mid-Thursday last week. Then the market shot higher at the beginning of trading on Thursday but has since been trending down. The downward trend has been orderly, indicating there is not a rush to the doors.

With the QQQQs, notice the 8 solid days of trading higher. Over the last two days we've had more consolidation.

The 10-day IWM chart is extremely messy. There are three separate flag formations, with price jumps to get to the different levels. But notice how incredibly uneven this part of the market is; trading is very jerky.