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ETF Market Technical Analysis Update 1-13-2010

|Includes: EWJ, SPDR S&P 500 Trust ETF (SPY)

Markets rallied back but may have put in a lower high - we'll probably know by close on Friday. We opened a position in EWJ (Japan) today which I will talk about on the Thursday video.  Meanwhile I wanted to share two charts I have been watching.  The LOG chart of the S&P500 from the 2007 peak.  Look at how the downward trendline runs through the area we are now.  The other is the rising bearish wedge in the S&P ETF SPY, an Index ETF, that has been developing since early July. Come back for the video blog tomorrow.

Long term chart showing declining trend line

Bearish rising wedge

Sea Lion Capital Management LLC

Disclosure: Long EWJ, Long SH