Thursday, August 5, 2010

Yesterday's Market

According to lumber futures, the housing market isn't coming back to life anytime soon. Prices took a big dive (a) and are now consolidating at very low levels (b). Also note the EMAs are moving sideways.

Soy beans are rising in sympathy with wheat (see below). Prices are in a strong uptrend (a) and have consolidated are important technical levels (b and c). The EMAs are moving higher with the shorter above the longer (d). Prices currently are consolidating after a strong move higher (e).

Above is a 60 minute chart of the wheat market. Notice the strength of the trend (a) and that prices have made nice, standard consolidations along the way up (b). Yesterday prices made a strong move higher printing some incredibly strong upward bars (c).

The SPYs are right at important resistance levels (a) but they have momentum (d) and money flowing in (b and c). Also note the 10, 20 and 50 day EMAs are over the 200 day EMA.

However, the DIAs are now over important resistance levels.

The 7-10 year part of the treasury curve is again at important support levels (d), although the EMAs are in a very bullish posture (all rising and shorter about longer). However, money is flowing out of the market (a and b) and momentum is declining.