Chop-fest

Futures made new lows in pre-market, but before the opening of the US-session, prices started to rise. They continued to do so during the morning. But that changed after lunch. Indices started to drop and gave back half their gains in about half an hour or so. There were a two rally-attempts in the afternoon, but both failed.

This week, markets underwent a 'bigger' correction. In the beginning of the week, everything was still possible and with the elections going on, markets appeared to be ready to rally again. But the day after the elections, new lows were made. A clear sign that a rally was not bound to happen any time soon.

Looking at the daily charts, you'll notice that tech and small caps have led the way down for several weeks now. But the Dow and S&P500 also gave their signals in October with a few lower highs and lower lows.

The question is, have we reached a bottom yet? Tech underwent a 10% correction and seems to be in for a bounce. But for the Dow and S&P500, it looks like the correction just started and more downside is coming. Time will tell...

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Oil was very volatile, kind of trading with indices, but with bigger gains.
Metals were mixed. While gold made a small loss and silver was up 0.5%, copper went down with 0.6%.
The euro is traveling lower, now touching 1.27.


Have a great weekend!