Flirting with resistance

Greece is one of the reasons why the market is down so much from it's highs. But today it might well be the reason why we gapped up and rallied. The Greece stock market was up double digits after the announcement it's two biggest banks would merge. Another possible reason for the rally was hurricane Irene. The damage it caused, was less than expected which was a huge relief for most.

The rally lasted all day, all be it without much conviction or volume. The latter maybe lacking since it's the last week of August and people are on holiday, also hurricane Irene probably caused all kind of problems for many people, making trading not first priority.

The indices are now flirting with the highs of 08/15. The bulls need some volume and follow-thru for a rally to be sustainable. But some consolidation first would be for the best imho.

First a 5-minute SPY-chart from today's action, thereunder a 4-hourly SPY-chart from the last 5 weeks.

A quick note on gold and silver: both were down today (respectively 2% and 1.5%). Oil on the other hand bounced nicely; up +2.5%.