Tuesday, August 21, 2012

Market Is Starting To Look Tired

Indices made new highs in the morning, but were back near or under the opening levels before lunch. In the afternoon, the market kept diving for a clean bear rally until late in the afternoon.

On the daily charts we see a lot of bearish candlesticks. From an inverted hammer for small caps over a dark cloud cover for the S&P500 to a bearish engulfing candle for the Dow.

This could suggest a short-term top is in place. And that wouldn't be that surprising, considering the fact that at current levels most indices are near important longer term resistance.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro and metals had great gains with copper up +2% and silver 1.6%. The euro jumped 0.9% higher. And all that while indices reversed and ended in the red.
Oil was up more than 1.5% intraday, but gave back a lot in the afternoon, finishing up only 0.35%.

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