Thursday, September 20, 2012

Buyers Step Up At The Right Time

The S&P500-index and small caps made a somewhat deeper pullback early on in the session, where as the Dow and Nasdaq held the lows of this week. Except for small caps, the major indices made a strong comeback towards their breakeven levels by the end of the session.

The overbought levels of last week are worked off thanks to the consolidation we've seen this week. The daily charts of the indices show possible bullflags and there are no real signs of rolling over. Today was proof of that, weakness early on in the session was bought and that brought price back to the levels of the previous close.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro pulled back some more today. This time there was no support at 1.30, but just above 1.29.

Gold and silver dipped heavy early on in the session, but regained most (gold) or all (silver) of the losses. Copper went down as well but couldn't get back up.

Oil finally bounced after making new lows in pre-market. Crude ended the day strong and formed a hammer on the daily chart.

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