Thursday, January 24, 2013

Signs Of Weakness

It all started yesterday after hours. AAPL-earnings weren't good at all and the stock took a big hit, down about 10% AH. And it did even worse today, losing a total of 12.5% since yesterday's close. Of course, that meant trouble for Nasdaq, which was the big loser of the day.

The session started well with new highs for the other indices and bulls charging strong. But at noon, the turnaround came. All the gains were given back and after a weak bounce, the S&P closed breakeven and the Dow and small caps with small gains. As already mentioned tech closed with a big loss...

Daily charts are starting to show weakness, a lot of inverse hammers were printed today. That could point to a short-term top. Now, tops and bottoms rarely form in one day. This could even take weeks to happen. But with the S&P at 1500 and the Russell2000 at 900, we might see lots of resistance near these round numbers.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro and oil did well today, the euro trying to break the 1.34-level again and oil rebounded from yesterday's big loss.
Metals had a bad day, copper lost only little, but gold was down 1% and silver even close to 2%.

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