Tuesday, August 14, 2012

Climbing The Wall Of Worry?

The day started with a gap up and with the exception of small caps, all major indices made higher highs. But the close wasn't so good and most indices ended breakeven, small caps with a small loss.

On the daily charts we see the indices creeping higher on ever diminishing volume. It's summertrading, so maybe we shouldn't pay too much attention to volume. The slow creep higher gives me the feeling we're climbing a wall of worry. Look at the price action from January until March of this year and you know what I mean. And no news from Europe is good news...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Oil had a good day (+0.75%), but is still trading in the same range for 6 days => bullflag?
While copper and silver broke even, gold lost 0.5%.
The euro traded sideways, 1.24 seems an important area to break. Once above, a rally is possible.

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