The Two Most Important Charts of the Day

• Posted by Robert Sinn
• on February 7th, 2012

Two charts stood out to me above all others at the end of the day: 1. $EURUSD surged above its January 27th high of 1.3234 to make a new high for 2012 thereby strengthening the case for the January 13th low of 1.2624 marking a major January effect low:

EUR/USD closed above the 38.2% Fibonacci retracement of the entire move from the October high near 1.4250 to the January 13th low of 1.2624.

2. The percentage of liquid stocks (836 liquid stocks in @daytrend‘s universe) trading above their respective 50-day SMAs ended above 90% for the first time since October 2010:

88.86% of NYSE stocks closed above their respective 50-day SMAs, as you can see it is very rare to see this percentage reach 90%.

 

The rally in the NASDAQ 100 ($QQQ) has been absolutely stunning, this is confirmed by the fact that 93/100 components of the index are currently trading above their 50-day SMAs. It is interesting to note that 94/100 components of the QQQ closed above their 50-day SMAs on Friday despite the fact that the QQQ ended today’s session higher than Friday’s close – This is indicative of the steady pace of the rally.

 

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