The markets opened higher, then moved sideways to the 10 minute SMA. They rallied agian, but then started a very slow and gradual descent that led to the formation of a double bottom. The first bottom occurred around noon and the second one occurred around 1. Then prices spiked higher on a strong volume surge, moving through all the SMAs. Prices then traded sideways until a bit after 2 when they again spiked higher on a volume surge.
On the daily chart, notice the following:
-- The 10 day SMA has moved through the 20 day SMA
-- The 10 day SMA is moving higher
-- Prices are above the 10 day SMA
This means the short term trend is positive
However
-- Prices are below the 200 day SMA
-- the 20, 50 and 200 day SMA are all moving lower
-- With the exception of the 10 day SMA, all the SMAs are moving lower.
The long-term trend is negative.
