Wednesday, May 9, 2012


A look at futures in pre-market. Huge gaps down, especially in the metals.

So what happened today? Another gap down, a retest of yesterday's lows and another fierce rally. Sounds very familiar, doesn't it? That's because today was almost an exact copy of yesterday. The difference was that the bounce happened much faster and halfway through the afternoon, price touched yesterday's closing levels and reversed.

The close was not so good, but price managed to hold above the opening levels. We're approaching oversold levels and a bounce could be in any day now. But you have to be brave to buy here, look at yesterday. A huge reversal intraday closing strong and forming a hammer on the daily charts. But today we opened near yesterday's lows and went even lower...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Metals were among the biggest losers on the morning gap down, but they rallied along with indices. Still, gold and silver were down about 1%.
The euro lost the 1.30-level and the focus is now on 1.29.
Oil retested 95-95.50, being this week lows and bounced back to 96.50.

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