Monday, August 11, 2008
The market opened a bit lower today, briefly falling through the 50 minute SMA. But it quickly recovered and moved through the 50, 20 and 10 minute SMA before 9 AM. Prices moved along the 10 minute SMA until about 9:30 when they started to moved higher. They continued to move up until a little before 1 PM, when they moved lower. Prices fell through the 10 and 20 minute SMA, and continued to move lower, falling through the 50 minute SMA. Prices staged a rebound but ran into resistance at the 20 minute SMA. Prices fell back and then rallied again, this time getting through the 10 minute SMA. Note how today's price action really highlighted the Fibonacci retracement levels in the market.