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6/4/2012 Monthly Factory Orders (0400 HI time / 1000 EDT)
Forecast: 0.3%
Actual: -0.6%
Previous Revision: -0.6% to -2.1%
SPIKE / REVERSAL
Started @ 83.09
Peak @ 82.83 – 0402 (2 min)
26 ticks
Reversal to 83.13 – 0408 (8 min)
30 ticks
Notes: Negative report fell well short of the forecast along with a large downward revision to the previous report. This caused a short spike of 26 ticks in 2 minute that crossed no SMAs or Pivots and could not reach the 100 SMA. Given such a disappointing report, the selloff occurring in the 30 min prior to the report took many of the bears out of the market, so it was unwilling to drop more than 26 ticks. The reversal yielded 30 ticks after a double bottom made a failed attempt at a 2nd peak. Then inspite of the report the market rallied for another 60 ticks in the next 10 min reacting to the larger oversold sentiment.