Tuesday, May 28, 2013

Big Pre-market Move, But Also A Big Pullback

The market moved big overnight, with futures gaining about 1%. That resulted in a large opening gap and some more gains early in the morning. But after one hour into the session, indices turned lower. They consolidated near the opening levels at noon, only to go further down in the afternoon. The bounce came in the late afternoon, but wasn't convincing.

Although we saw lots of weakness during the trading day, indices still closed +0.6% (S&P) and even +1.3% for small caps. Still good gains and a nice turn higher after the long holiday weekend. We came close to the highs from last week, let's see if indices can make it back there the following 3 days.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro is still trading near 1.29. A close above 1.30 would be bullish, a close below 1.28 would be bearish. Oil had a good day, gaining 1% near $95. But it's still closing well below the high of day just under 96. Not that much change in metals, with copper gaining 0.5% and gold and silver down a little bit.

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