Tuesday, November 9, 2010
The equity markets were very quiet yesterday. Prices dipped down after the open, eventually finding support at 122. Prices then rallied a bit, but really found a "center of gravity" at 122.35.
A very mellow trading day is to be expected, especially after last weeks jump higher (a) and ascent (b). Prices have spent the last day and a half in a very narrow trading range (c).
After a big jump higher (a) Treasury prices are drifting lower (b). However, they are still above key, short-term levels.
After consolidating losses (A), lumber is now in a small uptrend (B) which has been accompanied by two downward sloping pennant patterns to consolidate gains (C and D). The EMA picture has turned bullish (E), although the MACD is nearing a sell signal.
Gold is still in a strong uptrend (A). Although it sold off recently (B) it never moved below its long-term trend line. Now prices are making new highs (C). The EMA picture is strong (D) and the MACE has given a buy signal (E)..