Rusty Market Musings » IMF

Ranging mode anyone?

LtPinback — Tue, 07 Apr 2009 22:39:28 +0000

Market opened with a gap down and then tested the 825 support/resistance level but failed to break through upwasrds. From there price trended down and late in the day another unsuccessful charge up ended on a step sell off to close almost at the LOD. VIX fell 1.32% on the day which makes this “change in direction” of trend suspect until proven differently. Volume was dismal an even lower that the previous day. Financials were for most of the day relatively strong but succumbed to the final sell off.

S&P 500 Index 5min Chart

S&P 500 SPDRs 5min Chart

Some GM bankrupt chatter, Soros voicing his bearishness and the IMF forecasting toxic assets on the balance sheets of financial corporations could reach $4 trillion. Market seems more interested on AA forecast and the big banks earnings reports in the following days.

S&P 500 Index Daily Chart

New short-term high

LtPinback — Thu, 02 Apr 2009 22:11:06 +0000

Market gaped up again and rallied to new highs at 845.00. During lunch time 12:30am-02:00pm price reversed to lower levels but always remaining well above 825.00. The move followed with a quick rally to try to test the HOD. This move failed short of the target prompting in the last hour of trading a profit taking sell off on some volume. Price closed above the key support level at 825.00.Volume was high.

S&P 500 Index 5min Chart

S&P 500 SPDRs 5min Chart

News on relaxation of accounting rules and the G20 meeting reaching various agreements on how to tackle the financial crisis and pledging a trillion dollars to the International Monetary Fund (IMF) helped to fuel the broad based rally.
Today a new short-term high was reached but price pulled back below the November high downtrend line before the close. SPY printed a Doji.

S&P 500 Index Daily Chart