Yesterday, prices really didn't move much at after the open (b). However, in mid-morning they fell to lows from Friday (c and g), then attempted to rally past resistance and failed (d and a). Prices then fell to the 20 minute EMA (e) and then fell off further into the close on high volume (f).
The IWCS -- the microcap index--are just above key resistance levels. Also note the EMA picture is improving with all of the shorter EMAs (10, 20 and 50 day) rising. However, the EMAs have been floating around the 200 day EMA for some the last month or so, so this is not as important a technical development, yet Take a close look at the A/D and CMF lines -- notice neither dipped lower during the sell-off. This indicates a lot of money did not leave the market; instead, more or less the same same number of traders were involved. Finally, note the MACD is rising, indicating momentum is strong.
The Transports are also right at key resistance levels (a). However -- and like the IWCS -- the A/D line and CMF indicate the recent sell-off did not cause a bid exodus from the market; instead, traders bode their time. Also note the MACD is rising.
In contrast we have the Treasury market, which opened with a gap higher (a) and them moved into a rally throughout the morning (b). Along the way prices consolidated in downward sloping pennant patterns (c). Prices spent most of the rest of the day consolidating in sideways movement (d), but did rally above resistance right at the close on increasing volume.
Oil dropped right at the open (A), rallied into the 50 minute EMA (B) and then fell again, forming a double bottom (C). Prices then rallied again (D), sold off and rallied again (E), eventually closing lower.
Gold is in a strong, upward sloping trend bound by lines A and B. The EMA picture is incredibly strong with all moving higher and the shorter above the longer (C). Also note that momentum is positive (D).
