Wednesday, October 23, 2013

Working Off Overbought Conditions

The major indices pulled back from yesterday's new highs, but bounced well of the lows early on in the session. The close wasn't that bad and all in all, daily charts look like we'll probably see some consolidation for the next few days. I don't see a deep pullback coming, and as long as there is no tapering, this market isn't in need of a correction.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro is consolidating right under 1.38. Oil underwent another day of losses, losing more than 2% intraday, but bouncing near $96. It's still down 1.5% (close to $97) at the close.
Metals pulled back, especially copper which was down 2%. Gold and silver lost 0.5%.

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