More Wild Moves

A big gap lower welcomed us to the last session of the week. And after being so overbought lately, this drop wasn't that much of a surprise. It was bound to happen one day. The question remains, how far will we fall and what's next?

But all in all not the worst of days. Although there was the gap lower and then more selling, we did get a nice bounce in the afternoon that got us back near the high of the session (for Dow/S&P that is, tech and small caps didn't bounce that well).

Tech opened stronger (/not as weak) as other indices. But what climbs higher, can fall longer and harder. And in the afternoon, Nasdaq was lagging the other major indices.
Other strong moves down were in oil and metals. Metals and mining (XME) was by far the worst performing sector.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro, oil and metals all lost big today. The biggest loser was oil, down 3.5%. This is probably due to profit-taking considering the +10%-rally the last couple of days.

Except for the euro, the losses were bigger than those of the major indices. With the euro down another percent, this doesn't look good for the currency. It lost 2.5% in 3 days.


Have a great weekend!