Wednesday, February 17, 2010
Yesterday, I noted the primary issue for the market was that prices had moved through the 10 and 20 day EMA, but ran into upside resistance at the 50 day EMA. All of this occurred at point A. Now at (B), we have prices above all the EMA, but forming a spinning top which is considered to be a bearish pattern but in fact doesn't perform like that ">as often as though.
A few more points. The first is to note the importance of looking at the performance of all industries. Here is a chart of the micro-caps:
Note this average -- which represents risk appetite -- broke above the EMAs day before yesterday. This was a prelude to yesterday's move. Also note
The DIAs moved higher yesterday (as in through the 50 day EMA) as well.