Thursday, August 7, 2008
The markets opened lower in a big way, and then moved lower touching the 200 minute SMA. Prices rallied from this level until they ran into resistance at the 20 minutes SMA before moving lower, again touching the 200 minute SMA a bit after 11 AM> Prices rose again, this time breaking through the 20 minutes SMA. But they couldn't maintain the momentum and they fell starting about 1PM. They took a big drop about an hour before the close, and then it was Katy bar the door.
On the 4 day chart notice that today's action took out about half of the Tuesday and Wednesday rally. Also note that prices fell below the 200 day SMA
On the daily chart, notice the following:
-- Prices are still in an uptrend.
-- Prices are above the 10 and 20 day SMA
-- The 10 and 20 day SMA are both heading higher, although at an extremely low angle.
-- Prices and SMAs are in an incredibly tight range right now, indicating a lack of direction.