Thursday, November 17, 2011

Big selloff late in the session

I'm gonna be brief here because I ain't got much time. The 1% gap down was bought this morning and we even managed to close the gap in the early afternoon. But soon after that, the reversal came. The trendline that was support all day, broke in the last hour of the session. And a big sell-off on huge volume was the result.

On the daily chart, SPY/S&P is now right at the lower trendline of the triangle that formed in the last few weeks. Tomorrow is key. If we brake that support, it could go down fast. And with selling volume like the last hour today, there could be blood tomorrow. Best/most bullish scenario would be to hold the support line tomorrow, or maybe briefly go under and close above it.

Where SPY is at support, the Dow and Nasdaq are only in the middle of there respective ranges. I expect no brake down until they are near support as well. So tomorrow might be a choppy day that ends near today's close. Just be open to everything, in these volatile markets it's very dangerous to have any kind of bias...

5m-chart SPY:

Daily charts DIA, QQQ and SMH:

Gold, silver and copper sold off, just like stocks did. Silver was the biggest loser, still the most volatile of them all I guess. Oil went through 100 like a knife through butter. We even came close to 103!
But the euro made multiday lows and seems to be leading the market lower. No real support until 1.3150-1.3200.

No comments:

Post a Comment