Thursday, 12 May 2016

10am update - opening reversal

US equities open higher, but the gains are less than pre-market levels. Far more notable is action in the precious metals/miners, which have seen a strong reversal. It remains the case that the broad strength in the metals/miners (since the Dec/Jan' low) are arguably an indirect bearish indicator for equities.




It sure wasn't look so pretty an hour ago... but we clearly have a provisional reversal underway.. not just in equities, but reflected in a number of other asset classes.

notable reversal... Gold, GLD, daily

Gold looks set to turn positive... with the miner ETF of GDX already +0.9% in the $25s.

notable weakness... NFLX, daily

Ugly... real .. real ugly. First soft target is $70..... much like AAPL.

10.03am.. The precise settling opening hourly equity candle.... BLACK-FAIL... with a major spike.. with hollow-red reversal for the VIX.

A real classic opening reversal... bulls got teased...     

10.15am.. AAPL breaks the Aug' flash print low of $92.00.. as negative iPhone7 chatter concerns some. Next big support.. $70.