Today's Markets

I'm going to use the daily charts to give a better idea of what is happening.



On the daily chart, notice the following:

-- From the bigger picture perspective, we are still in the middle of two bear market pennant patterns.

-- Prices are still below the 200 day SMA

-- The 10 and 20 day SMA are both increasing

-- The 10 and 20 have crossed above the 50 day SMA

-- Prices are higher than the shorter SMAs (10, 20 and 50), which will pull these averages higher.

-- Volume is still low



On the QQQQs chart, notice the following:

-- Prices are still below the 200 day SMA

-- Prices are higher than the shorter SMAs

-- The 10 and 20 SMA crossed over the 50 day SMA

-- The 10, 20 and 50 day SMA are all headed higher

-- Volume is still weak



In the IWM, notice the following:

-- Prices are still below the 200 day SMA

-- Prices are above the shorter SMAs

-- The 10 and 20 SMA are headed higher

-- The 10 and 20 SMAs crossed over the 50 SMA

-- Volume is still weak

Regarding volume, an astute reader commented that this might be because only smart money is going into the market right now -- waves of people are still backing off from committing funds. This is a distinct possibility and can't be overlooked.

The QQQQs are offering the strongest case for a rally right now. But the other averages are also pointing in that direction as well.