Wednesday, April 29, 2009

Today's Markets

A close look at all the charts below indicates the 10 and 20 day SMAs are moving higher on all. The 50 day SMA is starting to turn higher on the SPYs and IWMs and is already moving higher on the QQQQs and IYTs. These charts are looking pretty good despite the weak GDP reading today. My guess is the market thinks it can't get any worse from here.

Click on all images for a larger image




The SPY chart is still bullish and prices are just below important resistance levels. A move about the horizontal line would be a very bullish move. Also note the price/SMA situation is stil very positive. However, the overall lack of volume -- especially on the later part of the rally -- is still concerning.


The QQQQs continue to be the real market leader. While the SPYs and IWMs stalled a bit over the last few weeks, the QQQQs just continued higher. Most importantly, the QQQQs are just below the 200 day SMA. A move through that level would signal a possible return to bull market territory.




Today the IWMs broke through important upside resistance on good volume and a strong candle/bar. While prices are still below the upward sloping trend line that started in early March, today's move is a very important technical development.


The Transports are just below a very important technical level. Notice the incredibly strong volume bars printed over the last two days. Traders want to move this index higher.