Monday, January 19, 2009

Market Monday's

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Note this chart uses EMAs. These moving averages place more emphasis on the more recent prices.

-- Prices have dropped below the lower trend line of the upward sloping channel

-- Volume has been increasing as stocks have fallen

-- All the EMAs are moving lower

-- The shorter EMAs are below the longer EMAs

-- Prices are below all the EMAs

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-- Note the MACD is giving a sell signal.

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-- The daily 5 minute chart is showing a possible reversal. Prices crossed over the 200 minute SMA, fell back and then moved higher again. Also note that on Friday volume increased as prices moved higher -- a healthy sign.

The issue that is really concerning me right now is the MACD's position. It is possible for the MACD to remain at high levels and essentially bounce at those levels for some time. But also remember we're at the beginning of earnings season which franklyh looks terrible right now.