Today's Markets

The big news today was that all the averages broke through key support levels.



The SPYs break is small but noticeable. The key here is tomorrow's move. Usually prices have to break a trend by a certain amount for the trend break to be a "real" break. In his book on technical analysis, Pring suggests a break of 3%. For a shorter term chart, I would use a smaller figure.



Notice the QQQQs dropped a bit father through their trend line.



And the IWMs broke through their trend with a bit more gusto as well.

The daily charts show an interesting story.



The QQQQs daily chart is the first chart that caught my attention. Notice the following:

-- The 10 and 20 day SMAs are heading higher.

-- The 10 has crossed the 50 day SMA and the 20 will cross the 50 day SMA tomorrow

-- the 50 day SMA is heading higher

-- Prices are higher than all the moving averages

-- Prices are in the middle of an uptrend

-- A big drawback to this chart is the lack of volume



On the IWMs notice the following:

-- The 10 and 20 day SMA are moving higher

-- The 10 day SMA crossed the 50 day SMA and the 20 day SMA will cross the 50 day SMA withing a week or so

-- Prices are above the 50 day SMA

-- Prices are in an uptrend

-- Prices are hitting upside resistance

-- As with the QQQQs, there is a lack of volume that is very disconcerting



On the SPYs, notice the following:

-- The 10 and 20 day SMA are moving higher

-- The 10 day SMA crossed over the 50 day SMA

-- The 20 day SMA will cross over the 50 day SMA within a week or so

-- Prices are higher than the SMAs

-- Prices are in an uptrend

-- There is also a lack of volume

So on the daily chart we have a lot of positive developments except a lack of volume. That means an overall lack of buying interest which is not encouraging.