Monday, November 7, 2011
On the SPY's notice that since the arrow, the vast majority of the bodies have been small -- indicating there is a small difference between the opening and the closing prices. Last week shows an especially sharp example with a few gaps but very little intra-day action.
In contrast, the IWMs show a bit more intra-day volatility, but again, over the last week, the bodies are all very small, indicating a lack of conviction on the part of the bulls or the bears.
Finally, notice the QQQs have been moving sideways for a little under a month.
On the year-long chart of the SPYs, prices have hit the 61.8% Fib level (right around 126), which is also an important technical level established earlier this year. Prices are fluctuating around the 200 day EMA, but there really is little direction overall. Instead, we see a lot of sideways price action.