Tuesday, October 4, 2011

Bottom or Bear Market Rally - S&P 500 rallies 4% in last 1 hour

4 Oct 2011/ Tues - S&P 500 rallies 4% in last 1 hour from 1079 to 1123.
In fact, this was the second biggest reversal rally EVER in the last hour. ( Largest one being 4.7% rally in last one hour on 23 Oct 2008.) . This was the 10th such reversal gain ever.Details here.
Reasons - Overcrowded shorts ? triggered maybe by CME reduction of financial sector margins XAF by 33% or  Rumour of another bailout ?
Just pulled out these intraday charts of S&P 500 vs DXY US Dollar Index and EUR USD. Maybe this is a simpler chartwise `explanation`. ( Click to zoom)

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