Wednesday, November 5, 2008

Today's Markets


Big sell-off today, but consider the bigger picture.

-- Prices have broken out of the triangle consolidation pattern established in October

-- Prices are still above the 10 and 20 day SMA (meaning the 10 and 20 day SMA are providing technical support for a possible sell-off).

-- The 10 day SMA is about to cross above the 20 day SMA

-- The 20 day SMA is neutral


-- The 50 and 200 day SMA are both heading lower

-- The shorter SMAs are below the longer SMAs

Bottom line: this chart is sending mixed signals. The short-term trend is bullish but the long term trend is still bearish.