Thursday's Bounce Undone

What a turnaround Friday-evening! We started with a gap down, but indices kept trading down only little. But with half an hour left before the end of the session, news came that Obama was not to make a new offer in fiscal cliff talks. On that news, indices started dropping and they continued to do so after hours! The Thursday lows didn't hold and daily charts look more and more bearish.

If there's more negative fiscal cliff news during the weekend, we could see a 'black Monday'. You don't want to be all long at this point imho. This newsdriven market gives us big intraday swings in all directions, such markets are not easy to trade.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
They all suffered small losses, less than 1%. Where as indices lost a lot more. Oil and the euro still have a bullish look, judging their daily charts. Metals and indices however look more and more bearish.


Have a great weekend!