Tuesday, April 15, 2014

Support Holds, Big Volatility

Big moves up and down today. For the Dow and S&P500, support held. Yesterday's lows were (almost to the cent) the point where price reversed today. Tech and small caps did make new lows, but they also bounced well in the afternoon.

The moves were big, hence big volatility. The 5m-chart below paints a clear picture. From a morning rip to +184, down to 181.50 and back up over 184. That's a 1.5% move down and up again.

But it seems the low for this week is finally in. Now the question is, how high will we bounce this time? Or is this the start of a new rally? All in all, the 'correction'/pullback was only about 5% for S&P and almost 10% (!) for small caps.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro is pulling back a little bit more, trying to hold 1.38.
Oil also pulled back some, down 0.5% to $103.50.
Metals had a bad day, all deep in the red with losses between 1.5% and 1.8%.

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