Friday, July 16, 2010

Yesterday's Market

Let's start with agricultural prices. Over the last few days they have been in a clear uptrend. There are three gaps higher (a, b and c). Also note that prices have risen throughout the trading day on two days (d and e).

On the daily chart, prices are through the 200 day EMA. The shorter EMAs are rising with the shorter EMAs above the longer EMAs.

The SPYs are trapped at the 200 day EMA

The QQQQs are trapped at the 10 day EMA.

The 200 day EMA is acting as a magnet for the IWMs, keeping them from rallying.

On the SPYs, take a closer look at the incredibly strong resistance the 200 day EMA is giving prices. Also note the volume is a bit weak (b).

The 10 day chart really shows how prices have stalled (a).

Treasury prices have moved back over the long-term trend line.