Monday, August 13, 2012

Waiting For A Break

After trading near breakeven in the first half hour of the session, indices started to lose ground.
But still before lunch, price bottomed and indices started to reverse in the afternoon, back towards the opening levels.

It's now five days in a row that indices trade on the spot. Only small caps made some significant lower lows today and seemed to rollover until we got an intraday reversal this afternoon.
It's taking long before a break is coming (higher or lower). Is today's action in small caps a first sign of the direction we're heading for? On the other hand, tech already made new highs today... Lot's of uncertainty, so it's probably best to sit this one out on the sidelines.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Not a great day for metals; copper and silver down over 1%. Gold was also red but less than the others.
The euro actually managed to crawl back above 1.23.
Oil first went down together with indices, then rallied back up quite hard. But little after equities started to go up, oil reversed lower. It still managed to close near breakeven.

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