Tuesday, April 7, 2009

"Where, O'Where, Do We Go from Here?"
2D, 10m. - Apr. 7 - Gap down followed by a narrow range day.  Weak internals entire session.  Market trended lower but with little momentum.  There was extreme weakness at the close as can be seen in the Tall Red Candle.
10D, 30m. - Apr. 7 - The 10 Day chart shows the dominant Bull Channel.  The market closed at the low of the channel.  You can appreciate the continuation of the gradual down trend that extends back through the previous three sessions.  Is this a Bear Trend mixed in with the dominant Bull Channel.  The weak close today suggests weakness tomorrow, but we know from experience that that is far from being a sure thing.
3M, Daily - Apr. 7 - The Bull Channel prevails on this longer term chart.  The Price Action is above the Moving Average Fast Line (10 Day).  Note the Black MACD during this bullish phase and the CCI remains high in the range.  The "Trend is Your Friend", but all trends come to an end sooner or later.