Wednesday, April 4, 2012

Market Is Losing Steam, Oil And Metals Tank Hard

A big opening gap to the downside first consolidated some, but after half an hour into the session, indices started to go lower. Price kind of double bottomed intraday and in the afternoon a nice bounce/rally started. That got us back towards the opening levels in Dow and S&P500. Tech and small caps however were lagging and didn't bounce that much.

The daily charts are starting to show some cracks. There's the divergence in small caps, they are lagging for weeks now (+ failed break higher) and close to breaking the trendline. The Dow is now under it's trendline.
While tech bounced of it's trendline and 20-day moving average, small caps are having a hard time holding their 50-day moving average.

5m-chart SPY:



Daily charts DIA, SPY, QQQ and IWM:



Euro, oil, metals
Oil and metals sold off quite big today; oil -2%, silver even -4%!
The euro dropped some more after yesterday's ugly candle. We're back near 1.31.


Trades
All out of SNTS, my stop got hit at the start of the session. Average exit was 5.83 (in @5.51), for a gain of 5.53% (including commissions).

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