The Bonddad Blog
Still nerdy after all these years
Wednesday, August 13, 2008
I'm going to use the daily chart today in order to clear out the noise of the day to day chart.
Notice the following:
-- Prices are still in the uptrend that started on July 15
-- The 10 and th 20 day SMA are moving higher
-- The 10 day SMA is higher than the 20 day SMA
-- Prices are running into resistance at the 50 day SMA. If they move over this level look for some upside running in the market.
However, this is still a bear market rally in action. Let's look at the longer term chart:
Notice we are in a clear pattern of lower lows and lower highs with the 200 day SMA providing upside resistance.