Monday, February 16, 2009

Market Monday's

Click on all images for a larger image

On the daily chart, notice that prices dropped last week and are right at the lower end of the recent trading range. Also note that prices are below all the SMAs, but that the SMA picture is extremely cloudy right now.

The 5-minute chart offers a ton of interesting technical information. First, notice trading from Wednesday through Friday created an upside down head and shoulders pattern. In addition, note that each shoulder of the H&S pattern is a triangle and the head is a double bottom.

All of this implies we're moving higher this week. In addition, remember that prices are at the lower end of the trading range. Finally, we're supposed to get a mortgage rescue package sometime this week (Wednesday I believe) which could bolster the markets.