Monday, August 6, 2012

Lack Of Bad News Is Good News

The market had a small follow-through day, no major gains, but gains none the less. Tech and small caps outperformed, leading the market. There was no important data announced today, and no bad news from Europe means good news for the markets.

Most indices are now trading at or near the top of their ranges (see daily charts) or breaking those ranges/trendlines. But a very weak close could indicate another short-term top is in place. The daily charts are showing several inverted hammers.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro was barely up, but oil and metals made gains similar to the indices.

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