Wednesday, November 6, 2013

Large Caps To New Highs, Leading

The Dow rallied to new highs and dragged the S&P500 higher (but no new highs for S&P).
Tech and small caps pulled back in the first hour of the session, creating an interesting divergence with large caps and S&P500. I would rather like to see tech leading a breakout, but instead, large caps are breaking higher without the other major indices. Hopefully we'll see the others follow tomorrow, maybe with the help of some rotation in between different sectors.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Tomorrow, a lot of attention will go to the Twitter-IPO. Maybe this will fire up tech and small caps again. That is, if we don't see any problems like with the facebook-IPO.

Euro, oil, metals
The euro bounced back above 1.35. We could see a move as high as 1.365 for a possible head-and-shoulders formation.
Big bounce for oil! A +1.5%-rip higher brought oil back near $95.
Metals were mixed. Copper was down 0.5%, but gold and silver both gained 0.5% or more.

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