Tuesday, January 31, 2012

Morning Market

The IWMs (Russell 2000) fell below a longer-term technical uptrend, but found support at a high established early on the 23rd right below the 79 handle. 

The QQQs found support at a price from the 25th.  Also note the strong level of support from the 19th.  Both of these levels are centered around the 59 handle.

The SPYs opened the day lower, but rallied into the close.  The 131 level is very important.  However, prices are already below an upward sloping trend line.

What I find very interesting -- and telling -- is that both the QQQs and SPYs rallied today, with the QQQs ending the day slightly positive.  That's tells us there is still a strong bid in the market.

The above equity charts show that, despite the desire to drop, the indexes are holding onto support.  The following levels are approximate technically important levels to watch for:

IWM: 79
QQQ: 59.50
SPY: 131

The IEFs rallied to the top end of the their recent trading range, right around the 106 level.  Notice how tight both the EMAs and MACD is; there is literally no momentum in either direction.

Like the IEFs, the TLTs are in a fairly tight range between  116 and 122.  The MACD has a slightly downward bias, but it's not strong enough to lead to a short-selling opportunity just yet.

Right now, the treasury market is catching a bid from the safety trade.  However, with yields this at very low levels, it's difficult to see much of a rally from these levels.  On the equity side, we see indexes re holding their own -- at least for now.