Bulls Are Not Giving Up

After a small move lower in the morning, today was actually a trendday higher. Very nice and bullish action after yesterday's action and a close at the high of the day. We'll probably see some more sideways trading in the next couple of days (maybe weeks) before the next move up or down happens.

The weekly charts are printing bullish engulfing candlesticks. The action of the last few weeks reminds a lot of what we saw in the summer of 2010 and of the price action late August '11. We could easily do the same here: trade sideways in a wide range for a couple of weeks with some fake breakouts higher and/or lower before the next trend sets in.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Gold and silver are trading near breakeven, copper is down nearly 2%.
The euro was losing terrain, back to the 1.25-level.

Oil had quite a wild ride today. Overnight, it went down even more after yesterday's big reversal. But 82 was support and oil bounced back up to 84.50 in the afternoon, smack in the middle between yesterday's high and today's low! The charts seems to be printing a double bottom, but with oil lagging indices in a big way, I would be very cautious before going long in oil. Maybe with a bull call spread, to limit the risk (but also the profit).