After shaking off Europe's weekend drama yesterday, one couldn't help but think "no big deal". However, today Europe was once again a big deal and fresh fears (alongside Europe's major indices selling off) caused the US market to gap down at the opening bell and run heavily to the downside.
Almost like clockwork though, once the European markets closed, the US markets put in a bottom and started moving higher. Really it was beautifully clean intraday action as we can see below with this almost picture perfect cup & handle setup + breakout (chart from my thinkorswim platform),
With the markets finishing well off their lows, one can argue we have atleast found a temporary bottom. And they may be right. The key point to remember now though moving forward is that the US market is once again ultra sensitive to Europe. Any news tidbits from overseas can easily affect the US market, and that alone can be translated to simply, "cash is king."
Updated market analysis below alongside a great cup & handle setup from Disney (DIS). The stock has broken out after hours thanks to earnings and will open tomorrow at fresh all-time highs. Long live Mickey!
And here is the chart of Disney from my MarketSmith account,
nasdaq got support at 2900 second time after 03/06/2012 & closed at top..heavier volume after 12/16/2011.
2900 was important intraday, it bottomed at 2900.06. Impressive.