Monday, August 10, 2009

Market Mondays

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The market has rallied 15.5% since the mid-July. Also note how steep the line is -- line's of that amplitude don't last. Prices have already broken through the upward sloping trend line and are moving sideways. For the bulls, an ideal situation this week is for sideways movement or a fall to a natural support level like the 10 day EMA or SMA. To that end, we have the Fed this week which usually provides a natural slowing down as markets wait for the Fed's decision. While it's doubtful we'll see any move on interest rates (and probably won't for some time) the statement's tone is very important.