A Textbook Snapback Rally

• Posted by Robert Sinn
• on June 8th, 2012

The furious snapback rallies in the euro ($EURUSD), gold ($GC_F $GLD), and equities ($IWM $SPY) ended almost exactly where your garden variety technician would have expected them to end. EUR/USD was stopped cold at its January low:

Click to enlarge

Gold rallied more than $100/ounce before running out of gas at the confluence of previous support and an important Fibonacci retracement level:

 

Meanwhile, the S&P and Russell 2000 both fell just short of previous support and made lower highs to complement last week’s lower lows – the S&P 500 may be in the process of forming a new downtrending channel:

 

This was a textbook countertrend snapback rally – it was fast, furious, and if you weren’t on top of your game or blinked for too long you missed it.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus