The markets gapped lower today with the SPDR S&P 500 ETF (NYSE:SPY) gapping to the double bottom from last Thursdays open at $109.60. After flushing for the first few minutes of the day, the markets recovered and moved sharply higher to the flat line. They are holding there now, trading in a tight range just like a normal Monday in August.
The gap down occurred after GDP numbers from Japan were quite a bit lower than expected overnight. In addition, the U.S. Manufacturing Index in August just rose slightly and housing data continues to be ugly. Continued weak economic news has kept this market under pressure for the last week on fears of a double dip. The gap down came and the first candle of the day was a beautiful bottoming tail. In addition, the first candle of the day traded well below the double bottom from last Thursday intra candle but by the close of the 10 minute candle, it had recaptured it. These two signals are bullish. Add in volume and a dropping dollar and the markets were destined to rise back to the flat line, if not turn positive by the end of the day.
The dollar ETF PowerShares DB US Dollar Index Bullish (NYSE:UUP) gapped lower and continued to fall for most of the morning session. A dropping dollar helps the markets stay afloat and did so today.
Gold again was on the move higher with the gold ETF SPDR Gold Trust (NYSE:GLD) up by 0.68%. Gold continues to be a having for uncertainty. Anytime fear jumps up, economic data looks weak, gold is the place people run. To get more information, analysis, guidance and swing trades, join the Research Center.
Markets Saved Again On Monday Light Volume
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