Tuesday, November 18, 2008
On the yearly chart, notice the market is still clearly in a trading range between 85.80 and 92.50 (roughly). The market has been in this range for the entire year and there is no reason to think it won't continue. The bulls have the underlying financial situation along with stock market issues. However, the bears have an increasing supply coming to market. Basically there is a healthy balance between both sides creating a stalemate.
On the shorter-term side notice the following.
-- Prices have broken through the upper downward sloping trend line.
-- All the EMAs are headed higher
-- The shorter EMAs are above the longer EMAs
-- Prices are above all the EMAs
-- Prices are still within the above mentioned trading range, and
-- The EMAs are still bunched together
Bottom line: this market isn't going anywhere soon.