Wednesday, December 28, 2011

Euro dropping under 1.30, dragging down indices

The euro dropped big right at the opening of the session, going under the 1.30-level. The currency lost over 1% before the bleeding stopped. Indices went down together with the euro, losing over 1% (small caps even close to 2%). Silver once more reacted extremely bad, down about 5.5%.

The daily charts for Dow Jones & S&P500 are resembling an evening doji star-pattern, a strong bearish reversal pattern. The candles on Nasdaq and small caps are not looking hot either (not for the bulls anyway).

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals went down together with indices, but copper once more outperformed gold & silver.
Oil dropped to 99.50, still eying that 100-level.

Articles for this evening:
When Sentiment Turns Ugly
2011: The Year in Financial Blogging
The Give and Take of Volatility
The Fifth Habit of Creative Traders: Experimenting with your Ideas

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