Tuesday, May 22, 2012


Indices rallied very well in the morning, up about 1% just before lunch. But then problems started. First a drop that erased more than half of today's gains. What followed was a lot of chop and sideways action. In the last hour a new sell-off got prices trading in the red. Small caps were even down over 1%.
A nice bounce in the close is all that bulls managed to do in that last hour. But what a bounce!

So no follow-through today, the market needs more time before we'll see more upside imho. But any news can trigger buying. Although I rather expect the opposite to happen, the way things are going (a Grexit seems more and more likely)...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Neither of them could find any traction. Metals tried to rally together with stocks, but couldn't hold the gains and collapsed near lunch. The euro and oil were already making lower lows in pre-market and are looking weak.
All were down 1% or more, even the euro (back under 1.27)!

No comments:

Post a Comment