Thursday, July 24, 2008
The markets opened near their close but then quickly moved lower. They gapped dwon a little before 9 AM and then gapped down again right after 9 AM. Then they moved sideways omving into the 10 minute SMA before again dropping a bit after 10 AM. By this time they had moved through the 200 minute SMA. The markets continued to move sideways with a slight downward bias until a little after 1 PM when they moved down again. They tried to rally again but ran into resistance at the 20 minutes SMA before moving down toward the close.
On the seven day chart, notice that prices have moved below the trend line started on Tuesday of last week. This is the rally that resulted from the financials getting better (or some such nonsense). Prices are now at levels from the end of last week/beginning of this week when prices are consolidating their weekly gains.