Wednesday, March 28, 2007

Markets Looking A Bit Weaker

At the end of last week there was a lot of bullishness to the hourly and daily charts. The market trended up until mid-Wednesday, popped big-time after the FOMC announcement and followed with two days of consolidation.

That trend is reversing itself this week. I added the Fiboinacci fans to get an idea of where the pullbacks stood in relation to Fib analysis. We're at or near the 50% retracement level for all three averages. We're also approaching moving averages. A cross below would add another point to the bearish argument.

Notice a few points about these charts.

1.) The markets have not rallied above resistance.

2.) The SPYs and QQQQs have an increase in volume as prices decline.

3.) A fairly standard bear market pattern has the market making lower lows and lower highs.

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