Despite a lot of attention being focused on the testimony of the Federal Reserve chairman before the House Financial Services Committee, which included a barely disguised promise to reduce short term rates by another 50 basis points, there was little consequential movement in equities.

The Dow Jones Utilities index (^DJU) looks slightly more prone to a breakout downwards from its recent congestion pattern than some of the other broad indices.



Movements in prices of the utilities and gold are typically negatively correlated, owing to their different reaction to inflationary concerns. As the price of the precious metal makes historic highs and moves closer to the $1000 per ounce target, the gold and silver index (^XAU) made a marginally improved all-time high in yesterday's trading.



As discussed last week the Sao Paulo Bovespa index (^BVSP) is also on the verge of an all-time high.



Global Santa Fe (GSF) has negative momentum divergences that add emphasis to the rather bearish shooting star formation that was accompanied by very heavy volume.



Avid Technology (AVID) has risen steadily in a channel since the early February sell-off, but yesterday's break above the 50-day was not accompanied by convincing volume.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

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