Sunday, September 5, 2010

Where did the volumes go? – Market Analysis for 07/09/2010 by Singaporeseeds

2 Day chart for Dow


2 Day chart for S&P


2 Day chart for NASDAQ


When the volumes disappear, use longer time frame charts. The charts above are in 2 day periods and show that the indexes closed just above the 50 period moving average which is also an important resistance level.
Monday is a US public holiday and the markets are closed. However should the market open up and move up on Tuesday, the downtrend to 900 would be mostly dead. At this stage, I still believe that the markets will be trending down into October but I do not want to put too much money on the line on this. It looks like the bulls are fighting a hard battle and that we might well be moving sideways in a very volatile fashion instead.

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