Tuesday, August 10, 2010

Yesterday's Market

The SPYs are still trading in a very tight range; there is tremendous upside resistance around 113.

While the uptrend is still intact (b), we see the resistance in better detail on the daily chart.

The IWMs are also running into resistance, but at a lower below previous highs.

The above daily chart of the IWMs shows how tight the trading range has been for the last week -- prices have stayed in a three point range.

The QQQQs are seeing a little upward momentum -- b is above a and c is above b -- but the momentum is incredibly weak and technical more than anything else.

After moving through resistance at the $80 level (a), prices have fallen back to the 10 day EMA (b). However, the EMA picture is now very strong with the shorter above the longer and all the EMAs moving higher. In addition, there is strong upward momentum (d). The sell-off looks like a standard bull market pennant/flag pattern.