Monday, September 24, 2012

Still Not Ready To Move

Quite a opening gap lower we got on the indices. But they traveled back up towards Friday's closing levels and this still looks like a bullish pattern. However, a bigger pullback this week and all bets are off the table.

Commodities are starting to see bigger pullbacks, but the moves up in bonds and the dollar have the look of a bearflag. In other words, equity-bulls are still having the advantage here. It's been a long time that we've seen +1%-down days in indices. And as long as these draw dawns can be avoided, I favor the bulls.

The longer this consolidation takes, the bigger the next move will be. Up or down...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Looks like euro, oil and metals are all starting to go lower. For oil that would be the next leg lower after bouncing on Thursday & Friday. For the euro and metals it still looks like a bullflag-ish pattern. But last week's move in oil doesn't look bullish at all...

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