Wednesday, June 5, 2013

New Lows

New lows on the indices and several indicators are pointing to a highly oversold market. Still, we are only down about 4% from the top. A minor correction, considering where we are coming from. Meaning: a 25% move from bottom to top in S&P500 from mid-November to the 5/22/13 top. So there is still a lot of downside possible, but we could see a (short-term?) bounce any day now.

Lot's of volatility, look at the last 90 minutes of the session on the S&P 5-minute chart. Big candles on higher  volume. The VIX, aka fear index, is jumping higher. It's only the third time this year that this happened. But maybe the third time's the charm? With indices closing near the low of the day, we'll probably see new lows overnight!

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro is still near 1.31, not moving much. The same goes for oil, consolidating near 94 and up only little.
And even metals had a quiet day, only gold was moving up a little bit.

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