Note the following:
-- Assuming the triangle pattern is how other traders are looking at the market, we've seen a consolidation occur for most of this month. Also note that today's action took prices through upside resistance and through the 10 day SMA. The next logical point of resistance is the 20 day SMA which looks to be right around the 97 level.
Here's a closer look at the triangle:
HOWEVER
-- All the SMAs are moving lowerr
-- The shorter SMAs are below the longer SMAs and
-- Prices are below all the SMAs
In other words, it's a bearish chart still.
1 comment:
No kidding that it's still a bearish chart, BD!
Tomorrow or, at the latest, Friday, I expect to see an 800-point selloff in the DJIA, so nutty has the day to day action been. After all, the hedge funds still need to raise cash.
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