Wednesday, July 28, 2010

Yesterday's Market

On the daily chart, notice that prices have been in a strong uptrend for the last few days, printing strong candles (a). The shorter EMAs are moving higher as well (b).

On the 5 minute chart, notice the strength of the uptrend (a). A week ago, prices rallied strongly (b). Last Wednesday, Ben's testimony sent the markets lower (c), but they quickly rebounded bu gapping higher the next day (d) and making good daily rallies the following two days (e and f). Yesterday, prices gapped higher and then consolidated for the remainder of the day (g).

The long-end of the Treasury curve is finally moving below its long-term trend lines. The TLT is a far better chart than the IEFs; the TLTs have been moving lower for several days by printing some solid downward sloping candles. The IEFs are just starting to break trend. In addition, the IEFs have been here before, only to rebound higher.

The oil market is still having trouble with the $80 level, which is providing a ton of resistance to prices.

Gold took a major tumble yesterday. Right out of the gate prices dropped, and continued to move lower until 11 AM (a) when they started to move sideways for the rest of the day (b).

On the daily chart, prices continue to move lower (a). Also note the EMA picture is turning decidedly bearish, with the shorter EMAs moving through the longer EMAs (b). Also note that prices are below the EMAs which will continue to pull them lower.