Tuesday, March 5, 2013

Gap Up And Go?

Except for small caps, the major indices made new highs. Even all time highs for the Dow. On the daily charts we see nice gap ups, and this looks like the start of another leg higher. This rally is now over 3 months old and while people are seeing divergences everywhere in indicator X of Z, the rally is still not over.

It was only seven trading days ago when we saw a big down day for the market. Everybody (including me) thought that was the sign for a pullback or even a correction. But look... We're already seeing new highs!

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
With all the bounces, breaks and so on going on in the market, the euro is still underperforming. It keeps hovering near this 1.30-1.305-level. Oil on the other hand did well, bouncing back towards $91.

Metals started the day with a huge gap higher. Then they gave it all back, only to bounce a little bit in the afternoon.

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