Monday, October 22, 2012

Bullflag Or Start Of A Correction?

No blog last Friday due to circumstances, but we're back in business.

Friday's low eventually held, but in the afternoon the market made new lows, only to bounce back near the close.

On the daily charts, a possible bullflag is starting to form. But another possibility is that this is only the start of a bigger correction. Friday's action brought us under multiple support trendlines for major indices (Dow, S&P500, Nasdaq...). The coming days will be very important to watch.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro is still strong here, staying above 1.30.
Gold and silver were bouncing a bit today, but copper is still going lower.
Oil was definitely the worst performer, down more than 1.5%.

No comments:

Post a Comment