Tuesday, June 26, 2012

Morning Market Analysis

The five minute chart shows the overall price action for the markets yesterday.  Prices gapped lower at the open and moved lower all morning.  However, prices found their bottom around noon and then traded sideways for the remainder of the day.  Notice there were two small rally attempts -- one about 1:300 and one a little after 3:00.  Both failed.

The 60 minute charts shows that prices are now back into areas with strong price support.  For the IWMs (top chart), that's in the 75.5-77 area, for the QQQs (middle chart) that's 62-63, and for the SPYs (the bottom chart) that's 131-133. Also note there is support for all three charts at levels established in early June.

The entire US treasury curve -- from the short end (top chart) to the long end (bottom chart) -- is still trading at high levels.  Also note there is no indication of any sell-off coming down the pike; all the charts are bullish, with the exception of the SHYs (but, how much more can they rally in a 0% environment).