Wednesday, May 16, 2012

Sell The Rip

After a new overnight low, futures went up and made good enough gains to let the market open with a gap up.
After some consolidation at the start of the session, price went up some more. But without even reaching yesterday's highs (short-term resistance), price collapsed and then based just above the previous close.

Another leg down was short-lived and bounced when FOMC-minutes were announced. A swift rally was sold just as fast and we chopped around towards the close, closely under previous lows for the S&P, but with a significant loss for tech and small caps.

More weak action, but still no real panic selling (only small %-losses on the indices). Is the sell-off yet to come or is the bottom near? We are oversold according to the McClellan Oscillator, other indicators also point towards a bounce. Maybe we need to see some more blood, extreme down days...

No charts tonight since my broker connection went down 2 minutes before the close. I haven't been able to reconnect since.

Euro, oil, metals
Copper and silver were big losers once more, but gold not so much. Oil also went down, now trading under the 93-level. The euro is trying to hold 1.27 and already lost 4% in two weeks.

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