Tuesday, June 14, 2011

Market bounce & potential Inverted H&S

Another week another possible bottoming inverted H&S setup forming... Today we saw a nice gap up & go and then fade in the final hour to close under the 8 EMA. I wasn't expecting for the market to breach SPY 130. Volume on this first day bounce was light which whether you believe in volume as conviction of who is in control or not is still a non-confirm. But what is encouraging is that we saw a nice strong move out of small caps (IWM).

News out of China and Japan seemed to help lift the markets and you could see the risk ON signal in copper strength (on volume too). The dollar's weakness and the sell-off in bonds seemed to help the equity rally.

So let's see if we get a follow-through day tomorrow... I would welcome slight weakness in the morning and a strong uptrend throughout the day continued through Thursday/Friday.

SPY


30 minute


QQQ


IWM


DX_F


ZB_F


HG_F

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