Monday, February 4, 2013

Short-Term Top Imminent?

Friday it seemed we got another leg higher. But today the turnaround came and the major indices opened with a gap lower, declined during the day and closed mostly near the low of the day. This looks to me like a (short-term) top is forming and we could see more red the coming days.

How quickly this market can change. The previous trading day it looked like it was setting up for another move higher, now it looks like the pullback is just starting.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Ouch, oil got hit hard, down 1.6%!
The euro reversed hard after already closing weak on Friday (1.37 from Friday is now resistance). The euro is now trading right above 1.35.
Metals were mixed: gold was up, copper and silver down, but all gains/losses under 0.5%.

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