Wednesday, August 4, 2010

Yesterday's Market

Yesterday, prices centered around highs established last Tuesday.

Yesterday prices consolidated for the entire day, but moved lower at the end of trading.

Prices are still in an uptrend (a). The gap higher is still in play (b). Notice the 10 day EMA is now through the 50 and 200 day EMA and the 20 is about to move through the 200 as well.

The IEFs are still above their long-term trend line. Also note the EMAs are very bullish. However,

Notice the MACD is (a) is showing declining momentum, and the CMF and A/D line are showing declining participation.

The long-end of the curve is still below its trend line (a). Also note the 10 day EMA is starting to move below the 20 day EMA.

The dollar continues to move lower. The large number of downside gaps (a) is partially caused by trying to make an ETF adjust to a 24 hour market. However, the severity of the drop lower indicates the dollar has quickly lost its safe have appeal that it attained during the Greek crisis.

Oil continued to move above the $80/bbl level yesterday (a). Also note the EMA picture is turning more bullish -- the 10 and 20 day EMA have moved through the 50 and the shorter EMAs are both moving higher.