Wednesday, August 6, 2008
Let's go all the way back to Monday because the market has had a major rally since then.
On Monday, the market opened lower then went into an upward sloping channel before selling off at the end of the trading day
On Tuesday, the market gapped higher and then continued to rally for the entire day. Notice how the market used the 10 minutes SMA as technical support for the entire day. Also note how the market closed at the high of the day on strong volume. The main news on Tuesday was the FOMC meeting where the Fed kept rates neutral. This has led the market to thing the Fed will be on the sidelines for the foreseeable future. A lack of a rate increase means low rates for the foreseeable future.
The market opened a bit lower today and then retreated to the 50 minute SMA. Then prices recovered and continued moving sideways until 1PM. Prices bounced off the 50 minute SMA and continued to move higher. Notice the strong move higher and then the fall back to 20 minute SMA.
The market has moved higher by 3.46% since the close on Monday.