Monday, August 9, 2010

Friday's Market

Last week, the SPYs were mostly in a very tight range -- as in a few points.

Prices are still under important resistance levels (a), but are still in a strong uptrend (b). The EMAs are still moving higher (c). Money is flowing into the market (d and e) and prices clearly have plenty of momentum (f).

The S&P 100 are also below important resistance levels (b).

As is the NASDAQ and


All the averages above have a strong technical picture -- rising EMAs, shorter EMAs above longer EMAs, prices above EMAs, rising MACDs, CMFs and A/D lines. The main issue is technical resistance that is providing, well, upside resistance.

The above charts of the short (1-3 year) and medium part of the curve (7-10 years) shows the safety bid is still very strong in the market. Until these markets break trend and start to move lower there will be downside pressure in the equity market.

While the wheat market is still in an uptrend (b), the end of last week saw some strong selling (a). The strength of the bar indicates there was some serious profit taking. Momentum is also still moving higher (c).

Copper prices have broken their uptrend (a) and are now consolidating in a sideways movement (b). The EMA picture is still very strong with all the EMAs rising, the shorter above the longer and prices above all the EMAs (c). Also note the MACD is still rising (d).