Monday, January 30, 2012

Market continues to buy the dip

Indeed, market opened lower about 1%, but after a small move lower, it went up once more. Tech even went back in the green for a while, and closed strong/near the high of the day.

From open to close, we saw good action today, even with a close near the highs. But the bigger picture is less bullish. Most indices closed outside of the range they were trading in for the last few weeks (see daily charts below). Tech and small caps are still performing considerably well, it's the Dow and S&P that look like they could see lower prices soon.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals, oil and the euro all travelled mostly in the same direction as the indices. Although metals couldn't go higher when indices did.
However, nothing is lost here. This could still be just a minor pullback, working off oversold levels from the past few weeks. So far, I'm still bullish on this market (although I don't like the overall volume, too thin for my taste).

What to read this evening:
This Pace Of GDP Is 'Always' Associated With Recession
The Greek Endgame
OPEC Says EU Ban On Iran Oil To Boost Prices
Historical Precedent: NASDAQ 2010
HCPG: Our Map Going Forward

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