Wednesday, September 14, 2011

Nice rally but a weak close

Earlier today I posted we broke 2 trendlines. We had a nice rally that got us right at resistance for a couple of indices, including S&P (1200 was resistance). However, the close was weak, the bears really did their best in the last half hour. The breakout is still valid, but bulls will have to step up.

Tech (NASDAQ) looking much stronger than other indices. So if you feel the urge to trade this market environment, certainly don't forget to include some tech stocks. But this is our third consecutive upday. I would not risk going long right here...

Gold and silver only down moderately, while oil is up 1%, right under the 90-level. It figures the euro also rallied with the market, where as a weak dollar often coincides with strong equities.

Daily chart DIA:

Updated ES-futures hourly chart:

SPY 5m-chart, note the hugh volume on the reversal:

SGG closed the Monday-morning gap and then bounced hard, BAL still moving higher, so keeping both in my portfolio. Stop-losses are at breakeven for both.

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