Friday, August 6, 2010
For the last four days, prices have been trading in a tight range, indicating the importance of tomorrow's jobs report.
Prices have stalled just below important resistance levels.
The Russell 2000 has also been trading in a tight range, and is still below important resistance levels.
Both daily charts have strong technical developments -- the shorter EMAs are moving higher and prices are above the EMAs. However, the fundamental developments are incrediblyh important to the market right now.
After Friday's early morning move higher (a), oil has been moving sideways (b).
Copper is also consolidating (d) after moving through important resistance (a, b and c). Note the EMAs are very bullish (e) as is the MACD.
While gold have broken through resistance (a), prices are still in an upward sloping, bear market consolidation channel (b). Also note that prices have run into upside resistance at the EMAs for the last three attempted rallies (c).