A lot can happen when many are sound asleep.
Future markets have overnight corrected and recovered on what seems like higher volume than is usually associated with future contract transactions at 3 or 4 am NY Time
This is S&P December
The entire move down looks corrective. A lot can happen till the open of cash market. A lot can happen after the open of the cash market. If market were to open right now, S&P cash would be around 1142 or so. A move below 1138 cash may indicate a change in short term trend. That level may change after the market open.
This is NDX December
A hard bounce from close to 2000. The decline here looks corrective as well. Corrective patterns can keep correcting deeper, of course. On clue in knowing if they are done or not is when we see impulsive advance after a corrective leg. So, the low around 2000 and the shape of the upward reaction from it may tell us if there is more to come.
US dollars has seen some bidding overnight
US Dollar has had a correction and a hard bounce against Euro
Interestingly there has been no bounce against Canadian Dollar
Gold contracts also have had a correction and a hard bounce
Look at that 8-dollar bounce from 1277
These past few days, gold miners have been holding up on poor breadth.
A correction in PM area may have started or be close to be underway.
Not surprisingly, US long bonds have bounced
Overall, it seems like we were correct pointing out weakness in S&P breadth and momentum yesterday.
How long this correction would last or whether it turns into something more serious is anybody’s guess. For now 1138 and 1120 are two price areas to watch. If 1120 is the beginning of a some wave 1 up, S&P should waste no time expanding breadth and momentum. If it can't, we may have a problem, at least, for the short term.
Keep an eye on US Dollar
Keep an eye on gold
Keep an eye on bonds
Seems like one needs three eyes this morning :-)
Have a Nice Morning!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago