Pages

Wednesday, April 11, 2012

The Sky Has Not Fallen...Yet

Further to my post of April 10th, there was a small overnight bounce today in YM, ES, NQ & TF, but no real advance during market hours, as shown on the 4-Hour charts below. Price remains below an immediate sharp downtrend line for now and is, therefore, still subject to further downside pressure until it's broken (with confidence) and held as new support (which is basically at today's high).


Looking at the Weekly charts below, these e-mini futures indices are still trading above their respective middle Bollinger Bands, which are the next levels of support on this timeframe...whether they hold remains to be seen.


Financials were the "flavour of the day," as shown on Stockcharts' Sector Summary below.


The graph below shows how these sectors have performed, along with the S&P 500 Index, since January of 2012. Favourites have been the Technology, Financials, and Consumer Discretionary sectors...clearly the leaders and the ones to watch for either continued strength or developing weakness. Energy is lagging on the year and also gained the least on today's advance, with Utilities being the second weakest.