Tuesday, March 31, 2009

Today's Markets

On the two day chart, notice there are two upward sloping trend lines, which prices broke at the end of the day today. Also note that prices moved through the 200 day SMA and the shorter SMAs are moving lower. Finally, look at the heavy volume at the end of the trading day traders were definitely looking to get out.

Pulling the camera back, notice there was a big gap down on Monday at the open, caused by the GM situation. Prices formed a downward sloping channel for the entire trading day yesterday, rebounded a bit today with a gap up but then fell through all the upward sloping support lines mentioned above.

On the daily chart, notice that prices are moving up the 38.2% Fibonacci level.