Thursday, May 3, 2012

Commodities Can't Catch A Break

Commodities are leading the market down, so it seems. Metals and oil sold off much more than indices.
Oil was even down 2.5% on heavy volume.

The ISM Non-Manufacturing number came in at 10 AM under expectations. That caused the market to go down, but support was bought initially near yesterday's lows. Price tried to regain the opening highs, but failed. From there on it was a trendday down (through previous support), all the way into the last hour of the session. That's were we finally saw a bounce. But it was only a dead cat bounce. Indices closed near the lows, almost all printing bearish engulfing candlesticks (see daily charts).

Tech and small caps were underperforming the other indices, down 1% and 1.5% respectively. The Dow lost 0.5% and the S&P500 was down 0.75%.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Oil and metals got another beating this morning (like mentioned before). We're seeing quite a correction in commodities, while equities are holding up rather well, in comparison that is.
The euro started the day better, after bouncing hard on the 1.31-level. It traded near the levels of yesterday's close.

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