Thursday, June 13, 2013

Piercing Lines And Engulfing Candles

A piercing line is a bullish two day reversal pattern. The first day, is a long negative day. The next day opens at a new low, then closes above the midpoint of the body of the first day. Today, that was the pattern most major indices were showing on their daily charts. S&P 500 and small caps did even better with higher highs => a bullish engulfing candlestick formed.

S&P500 made a sharp V-move from pre-market lows (near last week lows). From bottom to top, today's rally was more than a 2.5%-move, a very resilient market here. This 1600-level seems to be good support.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro almost hit 1.34, but gave up some of the gains. It's still trading well over 1.33.
Oil had a good day making new highs and came close to touching 97. It's now near the highs of May, and is possibly preparing to attack 100 again.
Metals were first going lower simultaneously. Gold and copper closed with small losses (0.3%). Silver even managed to end with some gains, up 0.2%.

No comments:

Post a Comment