Tuesday, February 14, 2012

Another dip bought, and how!

During premarket, price was stopped again by the same resistance as the past 3 days. From there on, we mostly went lower. Friday's high became support for 90 minutes, then we made new lows... But with the Friday-Monday-gap closed, price finally found some support near that level.

And then!! Incredible buying in the last half hour, suggesting we will see new highs in S&P this week (already new highs for Nasdaq today!). Price shot up fast and on huge volume. Haven't seen such action in a while and I expect a gap up tomorrow.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and SMH:

Metals, euro, oil: just before the last hour of the session began, gold, silver and oil made a higher low while the market and the euro made a lower low. That was the signal we had seen the low of the day (although we had a retest of the low). While indices went berserk, metals, oil and the euro came off there lows, but not as much as indices.

Articles for tonight:
Valentine Love Letter to the Market
Weakness Seeping In
When Earnings Slow, Focus on Big Cap, Quality

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