Monday, May 21, 2012

The Bounce Everyone Was Waiting For

We finally got the long waited for bounce. Tech rallied 2.9%, mainly thanks to AAPL which gained almost 6%. A close second were small caps, +2.1%. The S&P500 was next, the Dow was lagging, gaining 'only' 1.2%.
Price rallied nicely throughout the morning, and then started basing near Friday's highs. In the last hour of the session, new highs were made right into the close. A good close and nice gains, but we need more volume and a follow-through day to confirm today's action.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
After the recent run in gold and silver, both needed a rest, while copper rallied together with indices/stocks.
Oil also made a nice recovery, up 1.5%.
The euro managed to trade back to the 1.28-level, nice bounce after touching 1.265 on Friday.

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