Tuesday, August 9, 2011

Bounce - second attempt

Another thrilling day, with the FOMC-decision in the afternoon.
The market made a new low overnight, but rallied nicely in pre-market. However, 1150 was a big resistance level for the S&P-futures and it took several tries to take it out late in the regular session.

The market traded lower before the Fed-announcement (which was late, just like Obama earlier this week), briefly spiked up (red arrow) and then continued lower. We bounced on the 1100-number, also a pivot-point in pre-market (yellow arrow). And then the bulls started pushing. A nice intraday bullflag near 1140 and right thru 1150 we went, ending the day just shy of 1170. That's a 6,7% advance, about the same percentage we lost yesterday.
But unless the bulls can take out todays high in the next session, we're not homefree yet. Look at what happened last Thursday and you know what I mean...

Gold seems to be topping here, gapping up the last two days, but ending near the low of day. Silver was down 4,5% and seems ready for another leg down.
One very remarkable fact, the Swiss Franc (a safe haven as they say) was up no less than 5%, not bad for a currency!

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