Wednesday, June 24, 2009

Technical Picture - Mixed

Markets gapped up and extended into late morning on good earnings from ORCL and much better than expected durable orders. But the mid-afternoon FOMC announcement disappointed and the markets sold off, ending with a 38% retracement into the close.

As we can see from the chart above the morning rally stalled at the downsloping trendline. The long upper shadow is bearish. Volume was light. Looking ahead to tomorrow morning, there are important economic releases - at 8:30 AM EST, initial claims are scheduled to be released with current expectations at 600k and the final first quarter GDP number will be released, expected to remain at -5.7%. Those numbers could give direction.

The $USD got a lift from the FOMC and gold went the other way, but still managed to hold on to some of the day's gains.

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