Tuesday, January 3, 2012

Major gap up, but...

... during lunchtime, the market dove into that gap, breaking the morning low. Small caps led the market down. S&P500 bounced on the pre-market low and slowly edged higher. In the last 40 minutes of the session, bears tried to pull the market lower. It wasn't a big success at first, but in the last 10 minutes indices went down rather fast.

It's been a while that tech performed equal to or better than other indices and kind of led a rally, like today. Still, no conviction here, and volume wasn't great either. This breakout might be a fake out. Still, the daily charts show a higher high (except for nasdaq). The doji-candlesticks on the other hand, look like a short-term top is in place. Wait for confirmation the next few days.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals were rallying nicely, especially silver (up 7% intraday).
Oil broke the 102.50-level and the euro went back over 1.30.

Some articles for this evening:
2012 starts with a roar
Breakaway gap in US stocks - shorts are trapped due to CME rule
A Reminder from James Montier re: Fat Pitches
Make or Brake for the IYR
Was that a False Breakdown in Precious Metals?
Long Commodities, Short Restaurants?
What Housing Recovery?
The Rule Bender

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