Yesterday, the big move lower came from the Malaysian market, which dropped over 3% on concerns regarding the upcoming election. Notice how in one trading session, prices moved through three of the EMAs and found support at the 39.2% Fibonacci level. Finally, notice the incredibly heavy volume on the session, telling us this was a "Katy, bar the door" session.
On the other hand, we have the Argentinean market, which has now moved through upside resistance and is at six month high. Prices are now over the 200 day EMA, pulling the shorter EMAs (10 and 20) with it. Also note the strong volume reading on yesterday's session. The only drawback to the chart is the weak technical reading from both the MACD and the CMF.
Most importantly, the weekly chart shows us that prices are right at the top of a trading range that's been in place for about nine months.
On the bulls side are the transports. The daily chart (top chart) shows that this average has been on a tear since mid-November, rising a little over 17%. The lower chart shows us that prices broke out of a near year-long consolidation pattern and are through levels established in 2011. Both charts have strong underlying technicals, with the only drawback being the weak CMF reading on the lower (weekly) chart.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.