Tuesday, April 17, 2012

Gap Up And Rally

The title says it all, market gapped higher and rallied for most of the day.
Tech and small caps led, but the Dow and S&P500 did pretty good as well. For such decent gains in indices, many former leaders didn't make that much progress (CMG, BIDU, SBUX...). Although AAPL was up +4% after a 4/5-day pullback.

Today's action looks a lot like the one last Thursday. Of course that doesn't mean we'll pullback again like we did on Friday. We had a good close and with some follow-through tomorrow, maybe the 2012 rally revives.

5m-charts SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
There is barely any correlation between the euro and major indices lately. Today was proof of that; while indices rallied nicely, the euro mainly traded sideways.
Metals couldn't convince either. After gapping up, they sold-off hard but then bounced good. Gold near breakeven, small gains for copper and silver.
Oil had a good day, rallying to 105 where it hit resistance. Then a pullback.

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