Monday, December 29, 2008

Market Monday's

Like last week, this week is a short week. There is new years eve on Wednesday and New Year's day on Thursday, meaning Friday is all but gone as well.

Let's start the week with a few charts:

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The really big dip at the end of November (when prices dropped to the 74-76 range) really crimps the read of this chart. Without that dip I would call this a consolidation triangle. However even with that we have a declining trend line at the top of the formation and a declining average volume count at the bottom.

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On this chart, simply notice the rally that started in late November is over.

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On this chart, notice there is a lot of technical support in the 82-84 area.

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Let's look at the SMA picture

-- Notice the 10, 20 and 50 day SMAs are all bunched up. This indicates a lack of conviction from either the bulls or the bears.

-- Prices are below the SMAs, but not by much

-- Volume has been decreasing for most of December

-- There is no firm direction either way from the SMAs