Tuesday, December 6, 2011

Indices consolidating sideways, expect make or break-action later this week

The market opened more or less where it ended yesterday and started trading sideways in a choppy way. Price started to coil and we had a first small breakout just after lunchtime. A second bigger breakout followed about 90 minutes before the end of the session. Interesting note, tech was lagging all day long. Dow (big caps) were leading, not a very bullish sign imho (sort of a safe haven compared to tech & small caps, normally not leading rallies).

In the last 45 minutes bears came back, and they managed to bring price back down near the morning high-level. The yellow trendline held all day (see SPY-chart below), except for a minor break in the very last minute of trading.

5m-chart SPY:

Daily charts DIA, QQQ and SMH:

Precious metals didn't move as a whole today. For instance, near the end of the session, copper was down 0.5%, gold was up 0.7% and silver was +3%.
Oil was trading about breakeven at 101. The euro also didn't move much, breakeven at the 1.34-level.

Still long TZA, stop is at 26.

No comments:

Post a Comment