Wednesday, May 23, 2012

Big Intraday Reversal, Bulls Stepping Up

The market opened with a gap lower and tried to go higher. The pop up was right on the announcement of the new home sales numbers. Right after that, prices reversed and went a whole lot lower. 130 was the low in SPY, an important level that acted as support a couple of times before.
From there on, the only way seemed up. A pause at 131 for a pullback and than one big rally of 1.5%!

Small caps ended nicely in the green after being down almost 2%. Huge reversals in all major indices and good buying volume. The bounce is finally there, so it seems, and a short-term low is set in. The only thing holding this down, is weakness in the euro and in commodities, mainly energy (f.e. oil, but also copper and silver were still down >1%)

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
As already mentioned, the euro was still weak, making a lower low today, just like copper and oil (losing 1.5%!) Silver also lost >1%, gold was down only little.
I'm watching the 90-level in oil, this could turn out to be a nice support-level (resistance in late August/September).

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