Friday, February 10, 2012

Still In The Range

As I mentioned yesterday, sentiment seems to be changing. We opened with a big gap down. People were mostly freaking out over Greece. The China trade balance which was way above expectations, didn't help either.

But even though the action today was rather bearish, there's still no harm done. We keep trading in the range we're in since last December (see daily charts below). And as long as we can stay in that range, there's no need for panic. However, a correction/pullback would actually be healthy for stocks so they can set back up again. As long as we don't pullback more than 3-5%, this would be welcomed by many investors having missed the boat.

So what happened today. The gap down wasn't immediately bought, but the lows from last Friday till Tuesday acted as support. But the market didn't bounce like it often did the last days/weeks. Price stayed close to the lows for most of the day. Until the last 45 minutes of the session, when bulls came back to the game. And buyers pushed hard, especially in the last minutes. Right after the close, price rose another 10-15 cents.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Oil went down hard in premarket but bounced hard near the market open.
Metals were down too. Gold and silver only moderately, but copper lost 3%.
The euro went down over 100 pips, just as much as indices.

Articles for tonight:
Does Greece Matter to the Market?

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