Wednesday, September 23, 2009
OK -- guess when the Fed released their policy statement. No really, guess.
The markets popped higher at first, but then moved lower in a strong way on strong volume. Let's look at the key points.
1.) Prices move strongly higher on good volume. This is a long bar and it is a bullish sign.
2.) Prices print another long bar, this time moving lower stopping just above an EMA. This is a little more than half an hour after the big move higher and indicates the rally has failed.
3.) Prices rallied higher but ran into upside resistance at the 10 minute EMA. Prices then sold-off with a pretty long bar and closed just below the 50 minute EMA.
4.) Prices move through the 200 minute EMA and close below the EMA. This tells us we're probably going lower in a big way.