Monday, June 18, 2012

Déjà Vu

Lot's of news from Europe influenced trading today. First of all, the outcome of the Greek elections was more positive than hoped for, the extreme left SYRIZA hasn't won, and that was all that mattered. With that news, the market opened overnight with a big gap up. But with Spanish yields rising over the dreaded 7%, futures started turning back down. The result was, just like the Monday before, that the gap was sold and closed so that today's session actually started with a gap down.

That gap was bought and indices went up for 90 minutes (unlike last Monday when prices kept dropping). After a pullback and some consolidation, price started to rally again in the afternoon. But the market couldn't hold on to the gains and most indices ended the day with small gains/near breakeven. Only tech was strong, up almost 1%.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The metals moved along with the market in general, also ending with small gains.
The euro lost all of the gains of the gap up, but couldn't bounce like equities did. Result: down 0.5%!
Oil underwent a similar faith. The gap up was sold, but there was not much of a bounce. Oil lost 1%.

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