Tuesday, May 8, 2012

Support Breaks

Markets opened with another (small) gap down and soon we were heading lower. Sunday night lows were retested and held. Price bounced from there, paused at lunch, but got back up in the afternoon. While approaching the last hour of the session, the opening levels were also coming closer. And they got taken out soon after (except for the Dow, ending right at those levels).

All in all a very nice reversal day on great volume, printing hammers everywhere. But it seems too soon to call for a bottom. Maybe, well, probably it's a short-term bottom, but we're not there yet. A small reminder of someone, referring to the August 2011 'crash':

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Metals took another beating today, down 2%. Oil revisited the Sunday night low and then popped up again, still ending 0.5% lower.
The euro is trying to stay above the 1.30-level, but is finding trouble to go higher. It looks like we'll soon lose 1.30.

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