Sunday, June 10, 2012

Markets react to news from Spain

A strong gap up in all market indices owing to the news from Spain over the weekend. For instance, Emini S&P 500 index futures opened up +15 points. This gap up is painting a picture as though the Euro zone issues are resolved. The gap up is right at the resistance zone for Emini S&P. Keep in mind, the markets dropped down in heavy volume and rallied last week on weak volume. Some of the breadth numbers I keep track of have more room to the downside before we could resume the uptrend. However, the next few days of market action will determine direction of the move.

1 comment:

Kannan Thirumalai said...

The Gap up is being sold in a haste!!! not good for the markets.