At this point it seems the S&P 500 can just be renamed the Euro. Looking at the intraday charts yesterday it is remarkable the symmetry of patterns. That last 20 minute selloff in the markets was essentially a 1:1 parallel to a selloff in the Euro. There is really no other need for analysis.
This is the third straight gap up morning for indexes – yesterday's flavor of the day was financials, metals, mining, steel, coal et al – and a lot of the most beaten down "junk stocks" if you will. Looks like a lot of the same themes in the premarket positive column. Much like Friday after the initial gap up the market did little in the actual session, drifting sideways all day. We can see below we are near the top level of the ascending channel with today's gap up.
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