Friday, February 3, 2012

Morning Market Analysis

The above three charts illustrate the importance of looking at all the equity markets.  The top chart (the SPYs) 60 minute chart could lead to the conclusion that stocks are losing their upward momentum.  However, the bottom two charts (the NASDAQ and Russell 2000) show prices moving above previously established highs.  This gives us an indication we'll probably see prices continue to move higher, as the IWMs and QQQs are the riskier averages.

Gold is still in a rally.  Prices have advanced through the 102 level (which they did when the Fed announced its long-term interest rate decision) and have continued to move higher.  All the shorter EMAs are advancing with the shorter above the longer.  The MACD is also very bullish.

The dollar -- while still moving lower -- is finding support at the 200 day EMA.  However, don't expect this level to hold; the Fed's decision is long-term dollar negative and the euro is catching a bid.