Thursday, August 28, 2008
I'm loathe to call today's price action a break-out, only because the SMAs are such a mess. However, prices did move above the upper trendline of the triangle consolidation of the SPYs that started a little after the first of August. That being said, this index is still a mess and could go either way. Note the following:
-- Prices are below the 200 day SMA
-- The 200 and 50 day SMA are both moving lower. Therefore, the long-term trends are down.
-- The 20 day SMA is moving higher, and
-- the 10 day SMA has made a move to at least think about moving higher in the short run
-- Prices are above all the SMAs
Simply put, there are a lot of conflicting signals in the market right now.